Clean squid. Remove purplish outer skin and cut sacs into rings.
To prepare in a mortar: Pound onion, garlic, chiles, and salt together to a coarse paste. To prepare in a blender or food processor: Grind together with oil.
In a wok or skillet, heat oil over low heat and add paste. (If oil was used in grinding paste, add paste to dry pan.) Cook slowly until quite fragrant and oil is well stained with red. Add paprika if necessary to enhance color.
Turn heat to medium-high, add squid and Tamarind Water, and cook just until squid is done (about 2 minutes). Serve hot or at room temperature.
TIPS:
In its most authentic form, this sambal is bright red with chile and quite hot. If you prefer it a little milder, use fresh chiles that are not too hot, such as the milder strain of jalapenos now on the market; otherwise, use less chile and make up the color difference with paprika. Or use crushed and soaked annatto seeds which can add red color without the paprika taste,
