Like Rebel Hog said, we've always boiled them, breaded them and fried them. Then we would make gravy from the grease to pour over mashed potatoes and homemade biscuits. We would usually have rabbit and squirrel together and it would be so good that we would have to lay down to eat it.
As for parasites, we never squirrel hunted until after the first heavy frost. Some squirrel get "wolves" just under the skin. This is kind of like a ring-worm (or maybe it is one)but they are gone after a good cold spell.