Make the tomato sauce: Heat oil  in a large Dutch Oven over medium-high. Add garlic and cook, stirring, 1 minute. Add dried oregano and bay leaves, stir to toast slightly, then season with salt and pepper. As soon as garlic turns light golden brown, immediately add tomatoes and sugar (if using) and bring to a simmer. Cook, stirring occasionally and crushing tomatoes lightly with a wooden spoon, until just thickened, 15–20 minutes. Taste and adjust seasoning. Tomato sauce can be cooked and stored in fridge for up to 5 days.

Preheat oven to 350F.

Make the stuffing: Combine sausage, breadcrumbs, lemon zest and juice,  basil, half the   parsley, and a pinch of salt in a medium bowl. Mix well and set aside.

To clean the squid: Separate tube from tentacles by gently pulling apart. Locate quill, a long thin piece of transparent cartilage in tube that feels a bit like plastic. Remove it by grasping end and pulling it out, then discard. Clean out any remaining material from tube. Separate tentacles by slicing just under eyes (discard top portion with eyes). Spread open tentacles and squeeze to remove beak; discard.

Holding squid tubes in one hand, use your forefinger to fill each about ⅔ full with the sausage stuffing. (It helps to roll a bit of stuffing into a tube shape, then press into tube.) Do not overfill or tubes will burst in oven (if they burst they will still taste just as good!). Reattach tentacles to stuffed tubes using 1–2 toothpicks, pushing all the way through tubes. Arrange in a 9x13” Baking Dish.

Pour tomato sauce over stuffed squid and cover tightly with foil.  Bake 1 hour.

While squid is baking, make the grits: Bring chicken broth, half-and-half, bay leaves, and a pinch of salt to a simmer in a 2 QT Copper or Stainless Saucepan or 3 QT Saucier. Add grits or polenta in a steady stream, whisking constantly. Turn heat to low and cook according  to package directions,  stirring often to prevent scorching, until grits are thickened and no longer raw, 15–20 minutes. Season with salt and stir in butter. Discard bay leaves.

Remove toothpicks from squid and serve over grits. Top with extra tomato sauce from Baking Dish and finish with remaining parsley.