Rinse the salt cod under running water for 10 minutes then place in a container and cover with cold water. Leave to soak overnight, changing the water 2 to 3 times throughout soaking.
The next day, drain the cod, place it in a saucepan with the bay leaf and cover with the milk. Bring to the boil, cook for 2 to 3 minutes then remove from the heat and leave to cool for 1 hour.
Drain, discard the bay leaf and flake the cod, discarding any bones. Meanwhile bring the chicken stock to the boil in a large pan, add the potatoes and simmer for 15 to 20 minutes until just soft.
Drain, leave to cool then peel and cut into 1cm thick slices. Preheat the oven to 200 degrees Celsius or 400 degrees Fahrenheit. Heat a little olive oil in a large, heavy-based pan, add the onions and garlic and cook for 5 minutes until soft.
Add the potatoes and fry for 3 to 4 minutes until golden. Add the red peppers, capers, olives then remove from the heat and carefully stir through the cod. Season to taste then spoon into a large baking dish.
Bake for 15 to 20 minutes then remove from the oven and serve topped with the soft boiled eggs and a sprinkle of chopped parsley.