Either press the tofu down to remove as much water as possible, or boil sliced/cubed tofu in salted water for 2-3 minutes, then drain and keep it aside. I prefer boiling method for this recipe as it helps tofu absorb flavors so well.
Process ginger, garlic and Fresh Red Fresno Chile Peppers (or red thai chili) in a food processor to mince it all together.
Saute minced ginger, garlic, chili in 2 tbsp of oil on medium heat until raw smell of garlic is gone. Do not brown the garlic.
Add in ⅓ can of coconut milk to sautéed spices, keep the rest of coconut milk aside.
Add in whole 4 oz of Maesri Panang Curry Paste in the coconut milk in the pan. Mix really well to avoid lumps, cook on medium heat for few minutes until the oil starts to separate. Add in prepared tofu slices/cubes and gently mix it all. Cook on medium heat for few minutes, until the oil starts to seperate again. Take the tofu oil of the pan and keep it aside. Do not scrap of all the panang paste from the pan while taking the tofu out.
You should be left with some panang paste remainings in the pan. Add 1 more tbsp of oil in the same pan, then add sliced yellow onion and sliced red peppers along with 1 tsp of salt. Mix well, cover and cook on medium/high heat for few minutes, or until onions and peppers start to sweat.
Once onions and peppers are starting to sweat, add in spiced up tofu along with remaining coconut milk, 1 cup of vegetable broth and 2 kaffir lime leaves (broken in half). Kaffir lime leaves can be sub with fresh lime peels.
Mix everything gently, cover and let it simmer for 2-3 minutes.
Uncover and add in 2 tbsp of sugar, 2 tbsp of light soy sauce, 1 tsp of salt and 2 tbsp of creamy peanut butter. Mix gently and simmer for 2-3 more minutes while keeping it uncovered.
Add in chopped thai basil leaves, chopped cilantro leaves and fresh juice of a whole lime. Mix well, simmer for a minutes. Simply serve it with steamed jasmine rice of brown rice along with a lime wedge.