Start by cooking the onions in the olive oil over medium heat. Use a large pot – a Dutch oven is perfect for this recipe!

Once the onions are cooked, add in the garlic and stir through – cook for 1 minute.

Add in the tomato paste, paprika, salt, black pepper, oregano, basil, and bay leaf. Stir these ingredients into the onions and garlic. Allow the spices and the tomato paste to cook for 2-3 minutes.

Add in the potatoes and the water. Stir to combine.

Place a lid on the pot and cook for 5 minutes.

Reduce heat to simmer, add the tofu and stir to combine. Be careful not to break up the tofu pieces. Try to keep the tofu into solid, uniform chunks. I found that using a silicone spoon worked well.

Continue to simmer for 30 minutes. The sauce will thicken and the potatoes will finish cooking. Once the potatoes are cooked, stir in the parsley and turn off the heat.

Allow the goulash to sit for 5 minutes undisturbed before serving.