The Collaborative International Dictionary of English v.0.48:
Paleface \Pale"face`\ (p[=a]l"f[=a]s`), n. A white person; -- an appellation supposed to have been applied to the whites by the American Indians. --J. F. Cooper. [1913 Webster]WordNet (r) 3.0 (2006):
paleface n 1: (slang) a derogatory term for a white person (supposedly used by North American Indians)