Combine the nutritional yeast, cornstarch, ground white pepper, and salt in a rimmed plate or wide bowl. Mix and toss until well combined.

Drain the tofu and cut it into squares or nugget-shaped pieces, each about 1/3 inch (1 cm) thick. Do not press the water out of the tofu.

Take the tofu pieces one at a time and place them in the bowl of dry ingredients. Turn them over several times to ensure thorough and even coating, including on the edges. Place the coated pieces of tofu onto a clean plate or baking tray, gripping the tofu by the edges so you don’t accidentally pull much of the coating off.

Once all the tofu pieces are coated, heat the peanut oil in a large nonstick skillet over medium heat. When hot, add the tofu pieces without overlapping them. Wait 2 minutes before moving the tofu pieces. Flip and cook for another 2 minutes. Continue to flip every 1-2 minutes from there until both sides are crispy and golden brown. It should take 6-8 minutes total. Transfer cooked nuggets to a paper towel lined plate to drain and cool.