Preheat the oven to 160°C/320℉ gas mark 3. Get out a large casserole or pan (one with a tight-fitting lid) that’s big enough to take everything, and that can go on the hob and into the oven later.
Peel and halve the banana shallots (or small red onion), then cut into chunky half-moons. Cut the core out of the fennel, and discard it, then slice the fennel, including the tubey parts, into rough chunks. Don’t discard the fronds. Press down on the garlic cloves with the side of a heavy knife to bruise them, then peel off the skins.
Pour the olive oil into the pan, put it over a low heat and add the sliced shallots (or onion), chopped fennel and bruised garlic, along with the squid, left just as it is, and cook it all, stirring every now and again, for 10 minutes.
Stir in the orzo pasta and the chopped tomatoes. Add the tomato purée to the empty tomato tin, then fill it up with cold water and give it a good stir, before pouring this into the pan. Now pour in the ouzo and give the pan another stir. Do not season at this stage.
Turn up the heat, and once it comes to a bubble, clamp on the lid, then transfer the pan to the oven and cook for 1 hour and 20 minutes.
When time’s up, take the pan out of the oven and remove the lid. The orzo will have absorbed all the liquid and the squid should be tender enough to be cut into with a wooden spoon.
Add the hot water and stir well to scrape up any bits stuck to the bottom. Add salt and pepper to taste and most of the chopped dill, then stir before putting the pan back in the oven, with the lid off, for 10 minutes.
Remove from the oven, sprinkle with the remaining dill, and eat with no more than a crisp green salad alongside.
