In a large pot over medium heat, brown seitan in 1 tbsp. of vegetable oil.
Next, add onions and shishito peppers into the pot. Sauté over medium heat until soft. Add garlic and continue to sauté for another minute.
Now, stir in tomato paste and continue cooking for 2 minutes.
Mix in piquillo peppers, tomatoes, liquid smoke, paprika, parsley, thyme and bay leaf. Season with salt to taste.
Continue to simmer over medium heat for 10 minutes, stirring occasionally. Cover and allow to continue simmering over medium-low heat.
While that’s simmering, let’s cook the tofu steaks in a non-stick pan using another stovetop burner. Heat remaining vegetable oil in a large sauté pan over medium heat. Place tofu steaks in hot oil and sear until one side is browned. You’ll see that golden color creeping up the sides when the steaks are ready to flip. You may need to move these around slightly during cooking to prevent sticking.
Flip the tofu steaks and continue cooking on the other side until just crisp. Turn off the heat and allow tofu steaks to drain on a paper towel.
Let’s eat! Pour the piperade from the pot into a large serving dish. Top with tofu steaks and season with salt and paprika to taste. Garnish with fresh parsley. Enjoy!