CUT tofu block into 16 cubes of about 2cm by 2cm. Set aside.
ADD tamari, water, garlic, nutritional yeast, Dijon, onion powder and smoked paprika into a big bowl. Whisk to combine. (bowl 1)
DROP the tofu into the bowl with the sauce and coat. Set aside for 30 minutes to marinate.
ADD milk and flour to another medium sized bowl, whisk until smooth and set aside. (bowl 2)
ADD Simple Mills crackers into a food processor and pulse until you get a fine texture with some medium-sized chunks (those will make the breading extra crunchy).
TRANSFER crackers into a third bowl or a shallow baking dish alongside nutritional yeast, salt, onion powder, paprika and pepper. Mix and set aside. (bowl 3)
ADD arrowroot powder into another medium sized bowl. (bowl 4)
After 30 minutes
SHAKE tofu cubes to remove the extra sauce and drop them into the bowl with the arrowroot powder. Using a rubber spatula, toss them so that they absorb the arrowroot powder.
TRANSFER the remaining marinating liquid into the bowl with the milk and flour mixture. Whisk to combine.
Coat the tofu
PREHEAT oven to 400ºF.
LINE up your bowls. Starting with the bowl with the tofu (coated in arrowroot powder, which will be absorbed by some of the marinating liquid left on the tofu), following with the bowl with the milk mixture and finally with the bowl with the breading.
LINE a baking sheet with parchment paper and have it nearby.
USING one hand, drop one tofu piece into the milk mixture. Lift it out of the liquid. Let some of the liquid drip off and drop the tofu cube into the breading mixture.
USING your other hand (the clean one), cover the tofu cube with breading and then toss it around in the breading until coated. Drop it on your prepared baking sheet.
REPEAT for the rest of your tofu cubes.
BRUSH some avocado oil onto your nuggets if desired. This will give the nuggets a little more color. Alternatively, you can use an oil spray.
BAKE for 15 minutes, then flip and bake for an additional 10 minutes.
ENJOY immediately on their own or with a spicy sauce.