If you can't get good bacon then substitute with diced speck.
For paella, we use arborio rice.
I heat some chicken stock or white wine in the microwave then I add the saffron threads to it.
You can also substitute saffron for turmeric which completely changes the flavour but it still makes the rice yellow.
I flavour the oil by gently sauteeing sliced dried Spanish chorizos, sliced flame-grilled red peppers and diced bacon first, remove, use the oil to brown chicken thigh fillets (do not cook all the way) which are then removed and replaced later. Then add chopped garlic, dried chilli flakes (a little goes a long way) and diced white onion.
Once the onion is soft, add the dry arborio rice to the oil, garlic and onions and stir through. When all the rice grains are coated with oil, add the saffron liquid and white wine + chicken stock in a 1:2 rice to liquid ratio. Paella rice should turn out soggy rather than dry - that's the way we like it, anyway.
Nearly forgot: I also use tinned tomatoes (drain away the juice first).
I also use a cleaned, fresh blue crab - the crab juices released add a lot of flavour to the stock.
Finally, I add mussels (stand them upside down so they open and release their liquor into the rice), prawns (heads and shells on), calamari rings, white fish fillets and halved baby octopus... and frozen green peas.
I finish the cooking by clapping the lid on my sautee pan so that the remaining liquid (white wine, chicken stock) steams the seafood. If you don't have a lid you can use aluminium foil or place the pan in a hot oven for a few miuntes.
Round off with chopped fresh coriander/cilantro and freshly squeezed lime juice. If you feel daring, have some Thai or Vietnamese fish sauce on the side to really jazz up the dish.
When I make this dish, it's an interpretation which turns out with a very strong Thai/Nonya/Malaysian influence which I'm quite happy with. The flavours are stronger and more in-your-face.
^ Strictly speaking, the pan looks overcrowded in presentation terms because you can't see the rice which is layered on the bottom.
Before serving, you would place it all in a large serving dish and toss it like a salad so that all the ingredients are mixed together.
We went through a phase where we would go to the fish markets every Sunday and make paella for dinner that night. It's an awesome ritual and makes for great bonding/quality time.
Serve with chilled, dry white wine.
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