Press the tofu with paper towels to remove excess moisture, then cut into small cubes.
Heat a tablespoon of olive oil in a skillet over medium heat. Sauté the tofu cubes for 5-6 minutes, or until golden brown. Remove from the skillet and set aside.
Finely chop the onion and garlic. Heat the remaining tablespoon of olive oil in the same skillet and sauté the onion for 2-3 minutes, until translucent.
Add the garlic and sauté for another minute, until fragrant.
Pour in the tomato sauce, then stir in the oregano, basil, salt, pepper, and sugar. Mix well to combine.
Add the balsamic vinegar and simmer over low heat for 10 minutes, allowing the flavors to meld.
Return the baked tofu to the sauce, then gently stir to coat each piece with the tomato sauce.
Cook for another 5 minutes, then serve hot with freshly cooked pasta, rice, or crusty bread.
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