Quotations that skip paragraphs

Solution 1:

You can use an ellipsis, typeset on a line by itself (or paragraph).

The first paragraph of the quotation.

[…]

The third paragraph of the quotation.

Solution 2:

I agree with ShreevatsaR, but I would also suggest that you could also provide a small bit of linking text, like so:

"Blah blah blah blah blah blah blah. Blah blah blah blah blah blah blah. Blah blah blah blah blah blah blah. Blah blah blah blah blah blah blah. Blah blah blah blah blah blah blah."

Further on, he elaborated on the point:

"Blah blah blah blah blah blah blah. Blah blah blah blah blah blah blah. Blah blah blah blah blah blah blah. Blah blah blah blah blah blah blah. Blah blah blah blah blah blah blah. Blah blah blah blah blah blah blah. Blah blah blah blah blah blah blah. Blah blah blah blah blah blah blah. Blah blah blah blah blah blah blah. Blah blah blah blah blah blah blah."

If an ellipsis is going to take an entire paragraph anyway, a bit of text takes up no more room and may add clarity. Use your judgment. Here are some types of linking text I would use.

Later, he seems to refine his assertion:

or

After a little more descriptive text, he finally gets to the point:

or

While that seems forceful enough by itself, Ms. Peters later on delivers this devastating critique:

And so on. Obviously the linking text would depend on the subject and the type of narrative that's being interrupted by your deletion.