Paragraphs in <li> elements - incorrect indentation level

[lofcz]

Describe the bug
Whenever paragraphs are used in a <li>, their content is not correctly indented. Also notice the heading is not converted correctly, this affects any <hN> elements in <li>s.

Repro

<ul>
  <li>
    <h3>Heading</h3>
    <ol>
      <li>Text A</li>
    </ol>
    <ul>
      <li>Text B</li>
    </ul>
    <p>Paragraph text</p>
    <ul>
      <li>Item 1</li>
      <li>Item2</li>
    </ul>
  </li>
</ul>

Should be:

Currently is: