Clean the squid, rinsing off any sand, and cut into ½ inch chunks. Save a few ink sacs for flavor if you want. (Skip this step if you're using pre-cleaned and prepared squid rings.)
Heat about ¼ cup of extra virgin olive oil in a large, heavy pot and add the squid. Turn the rings so they quickly brown on all sides. Remove and set aside.
Add the diced onion and pepper to the same oil and sauté over a medium heat until they're cooked through, about 10 minutes. Add the garlic and cook for about 3 minutes.
Add the squid and the white wine and cook for a couple of minutes.
Add the stock, bay leaves, and potatoes. Bring to a boil, then lower the heat and simmer for 30 minutes, or until the potatoes are tender.
Season to taste with salt, pepper, and cayenne if you want a spicy kick.
Serve hot in bowls and enjoy with a cold glass of white wine (or manzanilla sherry)!