In stainless stockpot add water, lemon juice, dried chili, garlic, onions, bay leaf, parsley and salt.
Bring to a boil and simmer for 30 minutes.
Add black peppercorns and cook an additional 10 minutes.
Strain, saving liquid and discarding vegetables.
Add liquid back to same pot and return to boil.
Add baby octopus and simmer briskly for 30 minutes.
Shut off flame.
Allow octopus to cool in liquid for one hour.
Remove from liquid to cool completely.
Coat octopus with olive oil and grill until lightly browned in spots.
Remove and cut into approximate pieces, then place into a mixing bowl.