PREPARATION:

1. Rinse squid; cut body tubes crosswise into 1/3-inch rings. Rinse and drain scallops. Slice large scallops crosswise into halves. Combine water, oyster sauce and cornstarch in small bowl; set aside.
2. To cook seafood, bring 4 cups water to a boil in medium saucepan over high heat. Add shrimp; reduce heat to medium. Cook 2 to 3 minutes or until shrimp turn pink and opaque. Remove with slotted spoon to colander.
3. Return water to a boil. Add squid; reduce heat to medium. Cook rings and fins 1 minute; cook tentacles 4 minutes. Remove to colander. Return water to a boil. Add scallops; reduce heat to medium. Cook 3 to 4 minutes or until opaque. Remove to colander.
4. Heat oil in wok or large skillet over medium-high heat. Add jalapeño peppers; cook and stir 3 minutes. Add garlic; cook and stir 2 minutes or until garlic is fragrant and peppers are tender.
5. Stir cornstarch mixture; add to wok. Cook and stir until bubbly. Add seafood, peanuts and green onions; cook and stir 2 to 3 minutes or until heated through. Stir in basil. Serve with rice.