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Don,

Fresh squid is to good to eat to use for bait, when caught fresh there's no need to soak in milk as it should be tender enough. Clean as normal beat an egg in a bowl throw your squid that you have sliced up in there then dip in bread crumb mixture then straight into fry pan of hot olive oil. Shallow fry for a few minutes add a bit of salt remove the thin pieces of squid onto a plate lined with a serviette to absorb some of the oil drizzle with lemon and you have a kickarse meal.

Squid toughness depends on the size and type of squid too. The bigger the squid the tougher the flesh. If I catch a big one i soak in milk over night. I sometimes get the meat clever out before soaking to tenderize it further.

Milt,
 
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