Begin by heating the fish stock in a saucepan over low heat. Add the squid ink to the stock, stirring until it dissolves and the stock turns a deep black. Keep it warm as you prepare the paella base.
In a paella pan or large, shallow skillet, heat 2 tablespoons of olive oil over medium heat. Add the squid rings and sauté for 2-3 minutes until they’re opaque and lightly golden. Remove the squid from the pan and set it aside to prevent overcooking.
Add the remaining olive oil to the pan, followed by the chopped onion. Sauté for about 5 minutes until the onion is soft and translucent. This process allows the onion’s natural sweetness to develop, creating a flavourful base.
Add the minced garlic and grated tomato to the pan. Cook for another 3-4 minutes until the mixture thickens slightly, forming a sofrito, a key component in traditional Spanish dishes.
Sprinkle in the smoked paprika and stir for about 30 seconds to release its smoky aroma. Pour in the white wine, allowing it to simmer until it reduces by half, which will help concentrate the flavours.
Add the rice to the pan, stirring to coat each grain in the sofrito and oil mixture. This step helps the rice absorb the rich flavors, giving the dish its depth and character.
Slowly pour in the warmed squid ink-infused fish stock, ensuring the liquid evenly covers the rice. Season with salt and pepper, then return the squid to the pan, spreading it across the top. Reduce the heat to low, and let the rice cook undisturbed for about 20-25 minutes until the liquid is absorbed. Avoid stirring to allow the socarrat (crusty bottom) to form.
Once the rice is tender and the liquid has been absorbed, remove the pan from the heat. Cover the pan with a cloth and let it rest for 5 minutes. Garnish with freshly chopped parsley and serve with lemon wedges to enhance the flavors with a bright, citrusy finish.