Add the olive oil to a large skillet, and sauté the onions and bell peppers for 5 minutes until soft.
Stir in the tofu, making sure it is crumbled and resembles ground beef, about 3 minutes.
Stir in chili powder, paprika, cumin, garlic powder, oregano, sugar, salt, coriander and cayenne pepper if using. Make sure to stir well until the veggies and tofu are completely coated with seasoning.
Pour in tomatoes and their juices plus the green chiles. Stir well. Simmer for 10 to 15 minutes until most of the liquid has absorbed.
Place 4 tortilla halves on the bottom of an 8 inch square baking dish. (Tip: Place the straight edges of the sliced tortilla along the edges of the casserole dish, so the round parts of the tortillas slightly overlap)
Cover with half of the taco mixture (about 2 1/2 cups). Sprinkle with 1/4 cup cheese. Top with 4 more tortilla halves (2 whole tortillas).
Cover with remaining mixture. Sprinkle with 1/4 cups cheese. Top with remaining 4 tortilla halves and cover the tortillas with the remaining 3/4 cup cheese.
Bake in the preheated oven for 25-30 minutes until cheese is bubbly. Remove from oven and let sit for 5 minutes before serving. Sprinkle with cilantro if desired. Enjoy!
*This is a vegetarian dish but can easily be made vegan by using dairy-free cheese. *You can skip the bottom tortilla layer if desired. *Omit the cayenne pepper if you don't like slightly spicy dishes.
Recipe from Living Well Kitchen https://blog.memeinge.com/tofu-taco-casserole/