1 stalk lemongrass
1/2 small red onion, cut into thin half moons
1 tablespoon grated fresh ginger
1/2 cup medium-diced red bell pepper
1 tablespoon Thai roasted red chile paste
1/4 cup clam juice
1/2 cup roughly torn fresh basil leaves
1 teaspoon fish sauce, plus additional for seasoning
2 medium limes, one juiced, the other cut into wedges for garnish
Cooked rice noodles
1. Prepare the lemongrass by cutting off the top half of the stalk (where it is thinner and darker); discard. Trim the very bottom and discard, then cut the stalk into 1-inch lengths. Smack each piece of lemongrass with the side of a knife to help it release its flavor into the dish.
2. Heat a wok or large saute pan over high heat. Add 1 tablespoon of the oil to the wok, along with the lemongrass. Cook for 1 minute, or until the lemongrass just starts to brown. Add the squid and cook for 1 to 2 minutes, or just until the squid ring edges curl up a bit and turn white.
3. Transfer the squid and lemongrass, along with any juices, to a large bowl and reserve. Wipe the wok clean with a paper towel.
4. Add the remaining 1 tablespoon oil to the wok (still at high heat), along with the onions, ginger, bell pepper, and chile paste. Pick the reserved lemongrass from its bowl and add to the wok. Saute, actively stirring, for 3 to 4 minutes, or until the onions start to soften. Add any juice that has collected from the squid (but not the squid itself) and the clam juice.
5. Cook over high heat until there is hardly any liquid left, about 2 minutes. Add the squid, basil, and fish sauce, and cook for 1 more minute. Season to taste with more fish sauce as needed and add the lime juice.
6. Serve immediately, over rice noodles or rice, with lime wedges on the side.