Cod with Potatoes and Preserved Lemon Relish
['1/2 medium onion, unpeeled, halved', '1/2 head garlic (halved crosswise)', '1 lemongrass stalk, trimmed, tough outer layers removed, finely chopped', '4 sprigs thyme', '1 tablespoon black peppercorns', '4 cups low-fat milk', '1 1/4 pounds Yukon Gold potatoes (about 4 large), scrubbed', 'Flaky grey sea salt or kosher salt', '1/4 cup plus 3 tablespoons olive oil', '1 1/2 pounds skinless cod fillet, cut into 2" pieces', '1/2 preserved lemon, finely chopped', '1/2 cup finely chopped chives (from about 1 large bunch)', '2 tablespoons fresh lemon juice', '1 tablespoon hot smoked Spanish paprika']
Bring onion, garlic, lemongrass, thyme, peppercorns, and milk to a boil in a large saucepan. Reduce heat to low and simmer 20 minutes. Strain infused milk into a medium saucepan. Discard solids.
Meanwhile, cook potatoes in a large pot of boiling salted water until tender, 25–30 minutes. Drain, then peel potatoes and coarsely mash in a large bowl with 1/4 cup oil; season with salt.
Bring infused milk just to a boil. Add cod, reduce heat, and simmer until flesh begins to flake and is cooked through, about 5 minutes. Remove cod with a slotted spoon and transfer to a plate.
Combine preserved lemon, chives, lemon juice, paprika, and remaining 3 tablespoons oil in a small bowl; season relish with salt.
Mix 1/4 cup infused milk into potatoes. Place cod over potatoes; spoon relish over.
DO AHEAD: Relish can be made 2 days ahead. Cover and chill.
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