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Step 1
Preheat your oven to 350F (180C). Line with parchment paper or lightly grease a large baking sheet.
Step 2
There is no need to press the tofu as it will dry out in the oven. Simply drain off the excess water and pat dry. Use the large side of a cheese grater to grate the block of tofu into shreds. Set aside.
Step 3
Mix the oil, soy sauce, chili powder, smoked paprika, and garlic powder in a large bowl. Add the shredded tofu, and use a spatula to gently toss to evenly coat the tofu in the seasonings.
Step 4
Spread the tofu evenly over the prepared pan. Bake for 28 – 33 minutes, stirring the tofu halfway through, until the tofu is browned. For chewier shreds you will want to bake them a little longer, or for more tender shreds bake them a little less.
Step 5
Heat the BBQ sauce and water in a pan, and then stir in the baked tofu. The tofu will absorb some of the liquid and it will soften to tofu slightly making the most perfectly meaty texture. Serve hot as a sandwich, in tacos, on nachos, in lettuce wraps, on a baked potato, any way you like! Or allow to cool completely before storing in an air-tight container in the fridge for 3 – 4 days.