Instructions

• Preheat the oven to 375°F (190°C). Wrap the 1 pound extra-firm tofu in paper towels and place on a cutting board. Set a heavy skillet (or the cast-iron skillet) on top to press out moisture for at least 5 minutes.
• Unwrap the tofu and discard the paper towels. Cut the tofu into 1/2–3/4-inch cubes.
• Heat a large cast-iron skillet over medium heat. Add 1 tablespoon of the coconut oil. When the oil is hot, add the tofu cubes in a single layer and sauté about 5 minutes, turning as needed so all sides develop a light golden crust.
• Transfer the tofu cubes to a baking sheet and bake on the center oven rack for 12–15 minutes to crisp. Return the skillet to the stovetop for reuse.
• While the tofu bakes, chop the small onion and the 3 bell peppers into roughly 1-inch pieces. Mince the 2 cloves garlic. Crush the 12 kaffir lime leaves to release their oils.
• Heat the skillet over medium-high heat and add the remaining 1 tablespoon coconut oil. Once the oil is melted and hot, add the chopped onion and sauté for 1 minute.
• Add the chopped peppers and minced garlic to the skillet and sauté another 2–3 minutes, until the vegetables begin to soften.
• Push the vegetables to the sides of the skillet to create an open space in the center. Add the 4 ounces Panang red curry paste and 1 tablespoon peanut butter to the center. Cook the paste and peanut butter, stirring and moving them around the pan, for 2–3 minutes to bloom the flavors.
• Add the crushed kaffir lime leaves, the 13.5 ounces thick coconut milk, and 3 tablespoons fish sauce. Stir everything together and bring to a gentle simmer.
• Reduce the heat to low or medium-low and simmer uncovered for 10–12 minutes, stirring occasionally, until the curry thickens slightly.
• Remove the skillet from the heat and stir in the 1/4 cup basil leaves. Add the crispy baked tofu and gently stir to combine, or ladle the curry into bowls and top each bowl with the crispy tofu if you prefer. Serve immediately.