Remove the seeds and placenta of dried red chilies and soak them in hot water for 10-15 minutes.
Wrap the tofu block in a clean kitchen towel/ tissue paper. Cover with a plate and put something heavy on top. Leave like this for 10-15 minutes.
After 15 minutes, cut the tofu block into bite-size pieces. Add oil and salt, toss. Spread the tofu cubes on a baking tray lined with a baking sheet. Bake at 200°C ( 400°F) for 12-15 minutes.
In a grinder add the soaked red chilies and all the other ingredients of curry paste. Also, add 1-2 tablespoons of water in which the chilies were soaked. Grind to make a smooth curry paste.
Heat a pot and add ¾ cup of coconut milk. Cook while stirring in between until the milk starts to thicken. It will take around 6-7 minutes.
Add curry paste, mix, and sauté for around 5 minutes or until the raw smell of shallots and garlic goes away.
Next, add tomato paste, dried Thai basil, and coconut sugar. Cook for another minute. If using fresh Thai basil add it later with kaffir lime leaves.
Add all the vegetables and cook for around 5 minutes or until they are no longer raw but still crunchy.
Add coconut milk, vegetable stock, soy sauce, and crushed kaffir lime leaves. Mix well and let the curry simmer for 10-12 minutes.
Finally, add baked tofu and cook for another 2 minutes.
Add fresh lime juice and cilantro. Serve hot with jasmine rice or any other rice dish of your choice.