When a recording is paused, the extension icon will change from 
to 
There are 3 ways to pause and resume a recording:
The Screencastify icon
During a recording, click the extension icon and click the pause button.
To resume the recording, click the extension icon again and click the play button.
Keyboard shortcut
If you are recording a browser tab, you can press Alt (or Option) + Shift + P to pause a recording. You can also use this method during a desktop recording only if Chrome is the current application.
Press Alt (or Option) + Shift + P again to resume the recording.
Annotation Toolbar
If you are recording a browser tab or a desktop recording, and you have your drawing tools turned ON: 
you can click the pause button on the annotation toolbar in the bottom left corner of your screen.
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