Drain the tofu and press it for at least 20 minutes to remove excess moisture, then cut into bite-sized cubes about 2 cm each.
In a mixing bowl, whisk together cornstarch, nutritional yeast, salt, pepper, and smoked paprika to create your dry coating mixture.
Pour water or plant-based milk into a shallow dish for dipping the tofu cubes.
Dip each tofu piece into the water, allowing excess to drip off, then coat thoroughly in the dry mixture, pressing gently to adhere the coating evenly.
Place the coated tofu cubes on a parchment-lined baking sheet, leaving space between each piece to ensure even baking.
Bake the tofu at 200°C (390°F) for 25-30 minutes, flipping halfway through, until the coating is golden brown and crispy, and the tofu feels firm to the touch.
Once baked, remove the nuggets from the oven and let them cool on a wire rack for about 5 minutes to help the coating set and stay crispy.
Serve immediately with your favorite dips, or store in an airtight container in the fridge for up to 3 days. Reheat in the oven at 180°C (350°F) for about 10 minutes to restore crunch.