How to Make It
In a large glass baking dish, combine 3 tablespoons of the olive oil with the garlic, jalapeño, habanero and lemon zest. Add the squid and toss to coat. Cover and refrigerate for 1 hour.
Meanwhile, in a medium saucepan, cover the lima beans with 2 inches of water. Add the bay leaf, cover partially and simmer over low heat until the beans are tender, 40 to 50 minutes. Remove from the heat and let the beans stand in their cooking liquid. Drain just before using and discard the bay leaf.
In a large, deep skillet, heat the remaining 1 tablespoon of olive oil. Add the bacon and cook over moderate heat until crisp, about 4 minutes. Transfer the bacon to a plate. Increase the heat to high and cook the bacon fat until sizzling. Add the squid and its marinade in an even layer and cook, without stirring, until the squid begins to turn white, about 1 minute. Sprinkle the spice mix over the squid and cook, stirring, until just tender, about 1 minute. Gently fold in the bacon, lima beans and olives and cook just until warmed through. Stir in half of the Lemon-Shallot Vinaigrette and remove from the heat.
In a large bowl, toss the watercress with the remaining vinaigrette and transfer to plates. Top with the warm squid salad and serve at once.