To remove water from the tofu, wrap it in a paper towel or towel. Gently squeeze over the sink or a bowl, stopping if the tofu starts to crumble.
Heat a 12-inch skillet over medium heat. A smaller skillet can be used, but the tofu will take longer to brown. Drizzle with olive oil.
Once hot, use clean hands to crumble the tofu into the skillet. The result should be a mix of textures. If you don't want to use your hands, grate the tofu on the large holes on a box grater.
Add the diced shallot. Sauté the tofu until it's golden, about 12-15 minutes, stirring occasionally. If the shallot starts to burn, reduce the heat.
In a small jar, whisk together the Italian seasoning, parsley, fennel, garlic powder, onion powder, optional red pepper flakes, kosher salt, and black pepper. This step is optional, but it helps the spices to distribute more evenly.
Once the tofu is golden, stir in the minced garlic, tomato paste, soy sauce, and spice mixture, cooking until aromatic, about 1-2 minutes.
Stir in the nutritional yeast, sugar, and ⅓ cup water. Reduce heat to a very gentle simmer. Cover and simmer for 5 minutes. Remove the lid and taste for seasonings, adjusting as needed.
Continue cooking to brown the tofu, or serve as is. Enjoy!
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Notes
Italian seasoning: If you don't have Italian seasonings, instead add ½ teaspoon each of rosemary, basil, oregano, and thyme.
To double the recipe: The recipe can be doubled and cooked in a 12-inch skillet, but the browning step will take almost twice as long. The tofu should be stirred occasionally to encourage browning.
For crispier, richer crumbles, add an additional drizzle of olive oil at the end of cooking.
For a lower sodium option, omit the added kosher salt and use reduced sodium soy sauce.