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Fried Squid with Aioli

['2/3 cup potato starch', '1 1/4 teaspoons baking powder', '1 3/4 cups arepa flour (precooked cornmeal), divided', '1 large egg yolk', '1 garlic clove, finely grated', '1 teaspoon fresh lemon juice', '1/2 cup grapeseed oil', '1/4 cup olive oil', 'Kosher salt', 'Vegetable oil (for frying; about 8 cups)', '6 ounces cleaned squid, bodies and tentacles separated', '4 scallions, white and pale-green parts only, sliced into 3-inch pieces', '4 very thin lemon wheels', '1/3 cup torn basil leaves', 'A deep-fry thermometer']

Whisk potato starch, baking powder, and 3/4 cup arepa flour in a large bowl. Whisk in 2 1/3 cups water; let sit 30 minutes to allow flour to hydrate. Place remaining 1 cup arepa flour in a shallow bowl.
Meanwhile, whisk egg yolk, garlic, and lemon juice in a small bowl to combine. Whisking constantly, gradually drizzle in grapeseed oil and olive oil; whisk until sauce is thickened and emulsified. Season aioli with salt; stir in 1 tsp. water.
Fit a large pot with thermometer; pour in vegetable oil to come 3" up sides of pot. Heat over medium-high until thermometer registers 375°F.
Meanwhile, cut squid. Slice bodies lengthwise along one side and open to expose interior. Cut in half crosswise (or in thirds if large). Cut each half (or third) into 1 1/2" triangles; cut tentacles in half. Rinse; pat dry.
Working in batches of 5 or 6 and returning oil to 375°F between batches, dredge squid, scallions, and lemon in arepa flour, shaking off excess; dip into batter, letting extra drip off. Fry, turning every 30 seconds or so, until golden, crisp, and puffed, about 2 minutes. Transfer to paper towels; season with salt. Top with basil and serve with aioli.

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