Preheat your oven to 200°C (400°F) and line a baking sheet with parchment paper. Place a wire rack on top of the sheet for even crisping.
Press the block of tofu for at least 20 minutes to remove excess moisture, then cut it into 1-inch cubes or strips. Gently pat them dry with a paper towel.
Mix soy sauce, garlic powder, and sesame oil in a bowl. Add the tofu pieces and let them marinate for about 10 minutes, so they soak up the savory flavors.
Meanwhile, combine toasted panko breadcrumbs, nutritional yeast, and smoked paprika in a separate shallow bowl for the coating mixture.
Using tongs or a fork, lift each tofu piece from the marinade and roll it in the breadcrumb mixture, pressing gently to ensure an even coating.
Place the coated tofu pieces on the prepared wire rack, spacing them out to prevent sticking, and repeat with all pieces.
Bake in the preheated oven for 25-30 minutes, flipping halfway through, until the nuggets are golden brown and crispy around the edges.
Once baked, remove from the oven and let the nuggets rest on the rack for 5 minutes to set the crust.
Serve the crispy baked tofu nuggets hot with your favorite dipping sauce or a simple squeeze of lemon for extra flavor.