Question if a madam is on trial because she ran an escort business through magazine ads, shouldn’t the magazine be on trial for pimping?

New York- The accused million-dollar madam of Manhattan made a stylish public debut yesterday, sauntering into court wearing a luxurious black fur hat, a tapered coat and dark sunglasses.

The buxom champagne blond who lives likes a queen in Trump Palace pursed her plump lips but said nothing as her lawyer fought to keep her free – and revealed she’s battling breast cancer.

Jenny Paulino, 44, appeared comfortable before the throng of cameras, but prosecutors say she is more accustomed to conducting her business behind closed doors. The divorced Catholic school graduate is accused of raking in at least $2.5 million by selling sex to rich men.

Paulino allegedly used seductive ads in New York magazine to lure lonelyhearts to an East Side brothel, where gorgeous call girls would perform sex acts for up to $2,500.

Yesterday, Manhattan Criminal Court Judge Martin Murphy allowed Paulino to remain free on bail for another day – and hinted he would not force her to trade her upper East Side condo for a jail cell anytime soon.

Prosecutors described Paulino as the “main person” behind the high-end prostitution ring that undercover cops shut down last week. She is charged with promoting prostitution and money laundering.

Her sister and four other women also were arrested.

Assistant District Attorney Michelle Warren argued that the alleged madam should not be allowed to use her expensive homes in Manhattan or Miami to post bail.

But Paulino’s lawyer Kenneth Kaplan said it would be impossible for his curvy client to come up with a proposed $500,000 bond because authorities had frozen her assets.

Kaplan said Paulino also had no desire to flee because she’s still under a doctor’s care for breast cancer after undergoing surgery and radiation last year. He also noted that she flew up from Florida last Friday after learning cops had raided the alleged brothel on E. 60th St. The judge seemed swayed by the argument.

“I believe she’ll come back,” Murphy said, before saying he was bound to abide by the original bail set Saturday by Supreme Court Justice Edward McLaughlin.

Paulino is scheduled to be back before Murphy this afternoon.

Yesterday, Paulino’s Bible-toting mother, fresh from a bingo game at the Dyckman Senior Center in the Bronx, said she was still shocked by her daughters’ arrests. “Oh, Lord. I hope none of this is true about my daughters,” said 75-year-old Elsa Genao. “I’m praying for them.”

New York Post: An angry judge blasted prosecutors yesterday for demanding a whopping half-million dollars bail for the accused madam of an $1,000-an-hour Upper East Side brothel – hinting he didn’t think the case rose to the level of a felony.

“I don’t see any reason to have any bail at this point,” Manhattan Criminal Court Judge Martin Murphy told accused millionaire hooker-booker Jenny Paulino, ordering her to return today for his decision.

Paulino, 46 – arrested last weekend on charges her “American Beauties” escort service was just a front for a pricey call-girl ring – was in court yesterday to fight a previous judge’s ruling that she post $500,000 bail.

The purported purveyor, a busty bottle-blonde, chose an odd outfit to plead poverty in: a long, black, fur-trimmed coat and matching giant fur hat.

“I bet this case doesn’t get indicted at all,” Murphy said, implying that he believed prosecutors would not be able to convince a grand jury that Paulino used her pricey escort service to promote prostitution and launder money.

Paulino was busted last weekend on charges she raked in millions by running the American Beauties escort service, featuring a stable of gorgeous, Eastern European call girls from an East 60th Street town house.

Her first judge, Acting Supreme Court Justice Edward McLaughlin, set her free on condition she post $500,000 by yesterday – clean money only, not loot she earned from the alleged brothel.

But yesterday, Paulino showed up with two lawyers to insist the bail was far too high.

She’s suffering from breast cancer and has undergone radiation, her lawyers argued. Besides, they said, she couldn’t post a penny, since prosecutors had frozen all her assets.

Defense lawyer Kenneth Kaplan asked Murphy, the new judge on Paulino’s case, to let her post her $300,000 equity in her Trump Palace apartment and her $600,000 equity in her Florida home – money currently frozen.

That’s when Murphy hinted that when Paulino returns to court today, he’ll let her remain free on no bail at all, just like the two accused hookers and three accused brothel receptionists also arrested in last weekend’s sting.

Paulino has no prior record and has willingly shown up to court, Murphy noted.

Also charged in the case is Elise Paulino, the suspected madam’s sister.