Soak the dried mushrooms in the white wine for at least 30 minutes.
Clean the squid thoroughly under running water. Peel off and discard the skin. Separate the tentacles and head from the mantle body. Remove and discard the eyes and internal organs including the ink sack. Cut the mantle into 0.5cm wide strips. Chop the tentacles into bite-sized pieces.
If using fresh tomatoes, scald them in boiling water for 2 minutes, then peel and core them, chopping into small pieces. If using canned tomatoes, chop them into small pieces. Reserve the tomato juice.
Finely chop the onions and garlic cloves.
In a large pan over medium heat, add the chopped onions and garlic. Stir constantly for 2 minutes until softened and fragrant.
Drain the mushrooms carefully, reserving the soaking wine. Chop the mushrooms finely and add to the pan, stirring for 1 minute.
Pour the reserved mushroom soaking wine and tomatoes with their juice into the pan. Season with salt and pepper to taste.
Add the rosemary sprigs and bring the mixture to a simmer over medium heat.
Add the prepared squid pieces to the pan and stir to combine. Cover and reduce heat to medium-low.
Simmer for 50 minutes, stirring every 10 minutes, until the squid is tender.
While the squid cooks, finely chop the parsley and cut the basil into thin strips.
Once the squid is tender, remove the pan from heat. Remove and discard the rosemary sprigs. Taste and adjust the seasoning. Stir in the fresh parsley and basil just before serving.
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