So if I am in S-Note and taking notes with the S-pen, and I am writing on the yellow paper and it's getting recognized into the template above, what do I have to do to switch to using the keyboard (floating or whatever)?
On the little toolbar above the writing area, there is an icon that (probably) looks like a microphone. Press and hold and you'll get the option to choose the Mic, switch to Keyboard, or choose some options (gear setting).