Combine peanuts, breadcrumbs, salt, and garlic powder in a shallow bowl.
Beat egg with water and pour into another shallow bowl.
Dip each piece of tofu into egg mixture to coat all sides. Let drip off a bit, then dip in peanut mixture and use hands to press and help attach coating. Set on parchment lined baking tray and repeat with remaining tofu.
Bake for 20 minutes, then broil for 3 minutes to brown. Remove from oven.
Whisk all sauce ingredients together in a bowl and serve with tofu, for dipping.
This recipe was created for our “50 Plates of Tofu Campaign” for the state of Virginia.