Using a heavy based flat bottomed pan or a paella pan if you have it, heat up the pan and add some olive oil. Saute the squid with some salt and keep moving it to prevent from sticking.
When the squid has taken on some colour remove and set aside.
Add more olive oil and fry the onions and peppers and cook until golden brown, about 5 minutes. Reduce heat to medium and continue cooking for about 10 minutes until tender and the onions are caramelised.
Add garlic and the sweet pimenton. Keep stirring for about a few minutes until the garlic is soft.
Add the tomatoes and cook for a few minutes until some of the liquid has evaporated.
Add the rice, and stir to coat with the squid mixture for a few minutes before adding the fish stock.
Combine the fish stock and squid ink and add to the rice, keep stirring on a low heat until all the liquid has been absorbed. The timing depends on the type of rice and volume. Stirring this occasionally will stop the rice from sticking to the bottom and burning. This will take about 20- 30 minutes.
A few minutes before serving, add back the squid and prawns and stir in to cook. You can reserve some on the side to decorate if you wish. Check the seasoning and add salt and pepper to taste.
An alternative way to prepare the prawns is to marinate them in some olive oil, pimento, garlic and salt and pepper and pan fry them on medium heat and serve on top of the rice.
Dish it into pretty bowls and drizzle with more Extra Virgin Olive Oil from Spain and serve immediately.
This dish is sometimes served with Alioli garlic mayonnaise and wedges of lemon.