Combine the tofu, yogurt, gram masala, cumin, coriander, and turmeric. Let sit to marinate.
Preheat oven to 400°F.
Soak the raw cashews in boiling water to soften. Set aside while chopping the veggies.
Transfer the marinated tofu onto a parchment lined baking tray. Bake the tofu for about 15 - 20 minutes, turning every 5 - 10 minutes to get even browning. Keep an eye on it to prevent burning.
In a large pot on medium-high heat, sauté the oil, garlic, onion, jalapeño, and ginger until the onions are soft, about 5 minutes. Add splashes of water as needed to deglaze the pan.
Add the gram masala, coriander, cumin, salt, and cayenne pepper and cook for 1 minute until fragrant.
Add the diced tomatoes, tomato paste, drained cashews, cane sugar, and coconut milk. Blend everything with an immersion blender or transfer to a standing blender to blend until smooth. Cover with lid and simmer on low.
Once the tofu is golden, remove from the oven and add it to the pot. Give it a gentle stir, and serve with rice, naan, a sprinkle of fresh cilantro, some plant-based yogurt, and some lemon wedges. Enjoy!
