Hi Srushti,
I believe that you would like to add an image with a caption in the paragraph. Yes, you are right about "Image" not having the option to add the caption but you could split the paragraph into parts and add the "FormalImage" in between them.
A snippet for the same:
import mlreportgen.report.*
import mlreportgen.dom.*;
% Create the report
rpt = mlreportgen.report.Report('output','docx');
% Create the chapter
chapter = mlreportgen.report.Chapter();
chapter.Title = 'Image with Caption within a Paragraph';
% Create the paragraph
p = Paragraph(['Lorem ipsum dolor sit amet, consectetur adipiscing elit,' ...
' sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.' ...
' Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris' ...
' nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in' ...
' reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla' ...
' pariatur. Excepteur sint occaecat cupidatat non proident, sunt in' ...
' culpa qui officia deserunt mollit anim id est laborum.']);
% Add the paragraph
append(chapter,p);
image = mlreportgen.report.FormalImage();
image.Image = which('ngc6543a.jpg');
image.Caption = 'Cat''s Eye Nebula or NGC 6543';
image.Height = '5in';
% Add the image
add(chapter,image);
% Add the second paragraph
append(chapter,p);
% Add the chapter
add(rpt,chapter);
rptview(rpt);
Also, I have added the screenshot of the created document for your reference.
Hope this helps!
