Smashed potatoes that look like Squidward are a food item that appear in the episode "There's a Sponge in My Soup."
As its name states, they are smashed potatoes that resemble Squidward's face.
Role in episode
It is hinted that before the events of "There's a Sponge in My Soup" that Mr. Krabs got the potatoes used to make this food from a dumpster.
It is one of the ingredients that Mr. Krabs adds to the Krabby Soup.