Press the tofu for at least 15 minutes to remove excess moisture. Once pressed, cut the tofu into 1-inch cubes.
In a mixing bowl, combine flour, garlic powder, paprika, salt, and black pepper. Toss the tofu cubes in the flour mixture until fully coated.
Heat olive oil in a large skillet over medium-high heat. Once hot, carefully add the flour-coated tofu cubes to the skillet. Fry the tofu until golden brown and crispy, about 3-4 minutes on each side. Remove with a slotted spoon and set on a paper towel to drain.
In a medium pot, bring salted water to a boil. Add gnocchi and cook according to package instructions (usually 2-3 minutes or until they float). Drain and set aside.
In the same skillet used for the tofu, add the halved cherry tomatoes and sauté for 2-3 minutes until they begin to soften.
Add vegetable broth, soy sauce, and balsamic vinegar to the skillet with tomatoes. Bring the mixture to a simmer.
Toss the cooked gnocchi into the skillet and stir to coat with the sauce. Add the crispy tofu to the skillet and gently mix everything together. Cook for an additional 2-3 minutes to heat through.
Remove from heat and garnish with fresh basil and grated Parmesan cheese if desired.