I have seen so many people ask where they can buy cheap web hosting with an unverified Paypal. I know everyone has their own reasons why they use an unverified Paypal because if they can get verified it they would have get it one (except those scammers). So no point of telling them to get their account verified.
But the problem we have here is not many web hosting providers willing to accept unverified Paypal account because it's way too risky for them. If any of those hosting providers willing to do that then it their packages will be expensive. You can't blame them for taking bit more money for risk they take.
If you don't want to pay more money then you can use a provider who accept credit cards, if you have a credit card. Godaddy accept credit cards as well as Paypal so they might be something to check. NameCheap is another domain registrar company which accept credit cards. Also there are web hosting providers who accept alternative payment methods like Skrill (Moneybookers), Payza (Alertpay) etc.
If you have no other choice but using a unverified Paypal then the best option you have a Hostgator. They had some problems last year but things are better now. Hostgator is one of the most popular hosting companies in market and they do have cPanel too. They are little bit expensive but they are so many promo codes which you can use for getting a discount.
Also I saw a forum post saying hosting provider called Hosterbox accept unverified Paypal., I have no experienced using them but it's worth checking them. Important thing, Make sure you contact support and talk with them before buying from any of these hosting providers. If you are looking to provider who accept not Adult content then better get it verified by their support.