Grind together ingredients listed, add up to a tablespoon of water if needed.
Heat the oil in a pan, fry paste for at least 15 minutes on low heat, until the oil separates from the paste and looks red.
Put in the water, break the squid ink in the water, add sugar and boil until it thickens.
Add the prawns and then the squid. If you cut the squids to finger length, they should not take more than 11/2 minutes to cook.
Adjust salt according to taste and serve immediately with freshly steamed rice.