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Ooh my first proper recommendation! Take a look at Note Shelf. It's a beautifully designed app, my favourite in fact. You can make multiple notebooks, the hand writing is very easy, you can actually enlarge the writing area then shrink it back when you've written, it comes with dozens of pen colours, pencils, highlighters, you can choose the paper tape, forms, designer papers etc. it is a brilliant app.
I think 7Notes uses the MyScript engine, I could have sworn I heard that here in one of the multitude of note taking threads.