When I was traveling back home from Crete to Athens I read this recipe in the magazine of the air company I was flying with. It's very tasty and summer-y and goes great with ouzo.
salt, pepper
3 bay leaves
1 big octopus (about 3 pounds)
2 teaspoon(s) rosemary
2 cup(s) condensed tomato juice
2 cup(s) red wine
1 big onion
1/3 cup(s) vinegar
3 cloves of garlic, chopped
10 green olives, chopped, core removed
1 small green pepper, chopped
1 teaspoon(s) sugar
2 tablespoon(s) olive oil
Wash the octopus and bring a large pot of water to a boil. Add the octopus, close the lid and let it boil over medium heat for about 30 minutes. When it's done, chop it in 1 inch pieces and put it aside. Keep 2 cups of its water, you'll need it later.
Put some oil in a skillet and heat it up. Chop the onion, the garlic and the green pepper and sauté them in a medium-high heat for about 5 minutes or until the onion is golden in colour.
Pour 1-2 cups of the octopus juice and stir. After 2 minutes stir in the tomato juice, the sugar, the olives, the bay leaves and the rosemary. Let it boil for about 10 minutes in medium-high heat and then add the octopus and stir.
Season with salt and pepper according to your liking. Put the lid on the skillet and let it simmer in low-medium heat for about 20 minutes.
3 minutes before the end turn off the heat and stir in the vinegar and the red wine. You can serve it on its own or with pasta.