Theoretically I suppose it is possible, but likely? Probably not, imo.
First off, I dunno about any of you, but I don’t typically cook pancakes in boiling oil, but maybe I’m different. Also, I really don’t think (most) adults would be so stupid as to perform oral sex while cooking, that’s just asking for it. I know there’s always an exception, though.
No newspaper would use “willy” as a euphmaism for penis.
There’s no indication of what newspaper it’s from, or where, but it’s in English, and the story takes place in Romania, and no names are mentioned. No newspaper would carry such a story, because it’s no a news story, it’s a joke.
The term newspaper can, and does, encompass a lot more than just your standard New York Times or something similar. There are TONS of independant ones, or small-town papers, or gossip papers (National Enquirer) that would use the word. I read improper grammar in major newspapers everyday, publications with many, many proof-readers on staff and yet the improper language use is still there. So “a” newspaper, somewhere, using “willy” as a euphamism for penis isn’t all the hard to believe.
If you look closely at the picture, you can see that there’s printing on the opposite side of the page, too (it looks like it might be for some advertisement). So it might indeed be from some newspaper, although probably not one of the higher-class types. Think more along the line of the newspapers that report on the amazing bat-boy breaking free from his cage, and cows exploding in New England, and giant fleas terrorizing some small British town.
As for whether the news it reports is true, there’s no simple way for me to tell. And I don’t feel motivated enough to try the less simple ways of finding out.