If your going to use touch I found it much better to not bother with Mouse. Also I found that when using touch it's best to use Touch to get the original contact position then use a Drag and Drop box.
Touch on touchobject
dragbox set position touch.x and touch.y
dragbox is dragging
-> paddle.x = dragbox.x
that way when you release touch your paddle should stay still as your not constantly setting position by the touch, but instead the dragging box.