Place the tofu on a cutting board and cover it with a paper towel. Place a few heavy cookbooks on top of the paper towels and let the tofu sit for a good 20 minutes.
Once the tofu has been pressed, cut the tofu into strips. Set aside.
In a small bowl, combine the coconut, cereal, salt, and pepper. Stir to combine.
Prepare your "assembly line". Pour the coconut milk into a shallow dish. Start by dredging the tofu strips into the coconut milk, then transfer a strip to the coconut-cereal bowl and coat it with the mixture. Transfer the strip to a parchment paper-lined baking sheet and repeat with the other strips.
Bake for 20 minutes, then flip the tofu strips and bake for another 20 minutes more.
When ready to serve, quickly whip up the sauce. Combine everything in a small bowl and stir together with water as needed until you get a pourable texture.