15. A computer readable medium storing computer executable instructions for performing a method for recognizing handwriting on a paper form using a digital pen, the method comprising: accessing a stroke collection file comprising data corresponding to a set of pen strokes marked by a user on the paper form using the digital pen; associating a field on the paper form with a predetermined lexical inference type; determining a subset of pen strokes in the stroke collection file corresponding to the field, wherein determining comprises: associating the field with an area on the paper form corresponding to a first set of coordinates; accessing a second set of coordinates corresponding to a particular stroke from the stroke collection file; and comparing the second set of coordinates to the first set of coordinates to determine whether the particular stroke was written within the area associated with the field; based on the lexical inference type, dynamically updating an inference lexicon associated with the field; and performing handwriting recognition on the subset of pen strokes based on the dynamically updated inference lexicon.
18. The computer readable medium of claim 15 , wherein the lexical inference type comprises a word level, and wherein dynamically updating the inference lexicon associated with the field comprises: recognizing one or more of the pen strokes in the subset as a word in a predetermined word list; and based on a frequency of the recognized word, selectively adding the recognized word to the inference lexicon associated with the field.