The celeb chef issued a public video apology and begged for forgiveness for her "inappropriate, hurtful language."
"I've made plenty of mistakes along the way," she said. "But I beg you, my children, my team, my fans, my partners, I beg for your forgiveness. Please forgive me for the mistakes that I've made."
Just yesterday, Paula Deen Enterprises issued the following statement which clarified her use of the racist term.
"[Paula] was born 60 years ago when America's South had schools that were segregated, different bathrooms, different restaurants and Americans rode in different parts of the bus. This is not today."
"To be clear Ms. Deen does not find acceptable the use of this term under any circumstance by anyone nor condone any form of racism or discrimination," the statement added.
Lisa Jackson, who used to manage a Georgia restaurant run by Deen and brother Bubba Hiers, sued them last year, claiming Deen used the N-word around her and that she was sexually harassed by Hiers.
Deen also confessed to requesting that black employees dress up as slaves for an antebellum-themed wedding, and claimed that she got the idea from a restaurant where the waiters were all "middle-aged black men, and they had on beautiful black jackets with a black bow tie...I would say they were slaves."