1.Remove and discard head and beak of each octopus; cut each octopus in half. Rinse under cold water; drain.
2.Heat peanut oil in wok; stir-fry octopus, in batches, until browned all over and tender. Cover to keep warm.
3.Heat sesame oil in wok; stir-fry garlic, chilli and capsicum until capsicum is just tender. Return octopus to wok with remaining ingredients; stir-fry until basil leaves wilt and sugar dissolves.