Only the fresh squid have their ink sacks whole because if they get frozen their sacks break. The ink is sometimes sold separately in small packets at special shops with gourmet products.
2 large fresh squid, about 500grms. (1lb) each
½ cup Extra Virgin Olive Oil
1 large onion, grated
1 bay leaf
½ cup vinegar
½ cup dry White wine
3 cups water
2 cups Long grain rice
Salt and pepper
1. Clean the squid: remove the tentacles and clean the inner cavity and discard the entrails, remove the sacks with the ink and keep them in a small bowl covered with water. Cut the cuttlefish into strips or rings
2. Heat the olive oil in a wide pot over medium heat and cook the onion until translucent for about 6-7 minutes. Add the squid and bay leaf and cook by stirring, until it begins to change color. Pour the vinegar and wine. When it start to sizzle, add the water, bring to a boil, reduce heat to low and simmer for about 45 minutes, or until the squid is almost cooked.
3. Add the ink and the rice and mix well. Season, cover and simmer for another 15 minutes until the rice is cooked and the squid is tender (add some water as necessary). Remove from heat, allow cooling and serve.