Make the sofrito: Heat the oil in a medium pan until hot. Add the onion and fry in the oil until soft, stirring often. Stir in the garlic and the peppers, and before it begins to color, add the tomatoes.
Add the pimentón, saffron and salt to taste. Stir well, and cook until the mix is reduced to a jammy sauce and the oil is sizzling. Set aside.
To make the paella, preheat the oven to 400 degrees F. Heat a paella pan and add 3 tablespoons of olive oil. When hot, add the squid and cuttlefish, when it starts to take color add the rice and cook 1 minute to toast the rice, then add the sofrito and cook for 1 minute more.
Add the hot broth and then the rest of the ingredients except the lemon. Immediately stir the rice so that it does not become loose but after that, do NOT touch the rice again. You do not want to release the starch from the rice, after all we are not making risotto.
Cook the paella on the stove top for 25 minutes and then finish it in the oven for 10 minutes. The end result is a caramelized and almost crunchy consistently on the bottom that is the most sought after part of the paella called soccorat. Serve with lemon wedges on the side.