Camera obscura were probably used by some painters in Europe as far back as the 1500s. Evidence is sparse but there are some telltale signs that are the result of characteristic distortions from the mechanism. For decades, art historians have been having very vigorous debates as to who might have been using them. Vermeer is suspected to have done so and even da Vinci and Hans Holbein are sometimes proposed.
Abelardo Morell took an incredibly cool picture of Times Square that's projected onto the walls of a hotel room via a camera obscura. Well worth a look:
Using a camera obscura for this directly does not actually work for color paintings. As soon as you start painting you get the color projected atop your paint, making it essentially impossible to match the colors. You need a small modification with a mirror so you can see the projection "next" to your painting instead of atop it.
Tim's vermeer is a highly amusing documentary on the topic. I've got no real clue (or stake) in its accuracy, but it's worth watching for the idea alone.
Abelardo Morell took an incredibly cool picture of Times Square that's projected onto the walls of a hotel room via a camera obscura. Well worth a look:
https://aperture.org/prints/camera-obscura-image-of-times-sq...
And here's a video of someone experimenting with a Tudor era camera obscura to do a portrait:
https://www.youtube.com/watch?v=s9cd8X2UNt4