I also have used white paper with success.
Translucent plastic usually is the answer. Is there a chance your LED doesn't have a wide enough beam angle? Not sure if "beam angle" is the right word but I mean the angle the light shines.
In my case (which sounded similar to the OP's situation), the bulb was deliberately shaped to focus a beam of light in line with the bulb -- it's designed for use as a flashlight bulb replacement, and thus puts most of the light out in a tight beam. For a relatively omnidirectional LED, I agree that a translucent shield should do just fine, but I needed something dense enough to blunt the obvious 'spotlight' effect. A small square of regular printer paper did the trick for me . . .