Shred the block of tofu with a box grater on the largest hole side. Transfer to a bowl and toss with 1 tbsp oil and a pinch of salt. Transfer to an air fryer basket and air fry for 16 to 17 minutes at 400F, tossing halfway through cook time, until slightly golden and crisped, but still have some flexibility and softness.
Meanwhile, combine all sauce ingredients in a small skillet until the coconut sugar has dissolved. Turn heat on to medium-low and bring to a steamy, light simmer, warming through for about 10 minutes, stirring occasionally. The sauce will thicken slightly and darken in colour.
After 10 minutes, combine the cornstarch and water in a small glass and pour into the sauce, stirring frequently until it thickens slightly. Turn heat to low and add the crisped tofu shreds into the sauce, stirring to combine.
Allow the sauce to thicken slightly and absorb into the tofu a bit for 2 to 3 minutes. Serve hot in a bun or sandwich, enjoy as a side dish or on it’s own!