Drain and press your tofu. Do not skip this step.
Preheat oven to 350°F and prepare a baking sheet with parchment paper and nonstick spray.
Cut your drained tofu into strips about half an inch thick. For reference, I first cut my tofu into 4 equal parts and then each of those parts into 8 equal pieces (so 32 pieces total).
In a small bowl, whisk together the flour, baking powder, salt, and water to create a batter. The batter should be similar in texture to pancake batter. This will be used to coat the tofu nuggets before they are dipped into the breading.
On a small plate, combine breadcrumbs, brown sugar, and chili powder. I start on the lighter side of the chili powder measurement and add just a little at a time, taste testing as I go, until I get the spiciness level I want.
Take the nuggets one at a time and dip them into the batter, making sure they are fully coated. Then shake the excess batter off.
Place the nugget into the seasoned breadcrumb mixture and flip a few times to make sure the nugget is fully covered. I use one hand for dry ingredients and the other for wet to avoid making a mess of things. Place the breaded nugget on the prepared baking sheet.
Repeat with remaining nuggets until you run out of batter or breading. I was able to make these measurements work exactly for my block of tofu without running out or having excess. If you feel you're running out of either batter or breading, back off and keep it lighter. If you feel like you have excess, go a little heavier. It's fortunately not an exact science.
Bake at 350°F for 12 minutes, flipping halfway through.