Press the tofu to remove excess moisture, then shred it with a box grater, or crumble it by hand.
Warm the olive oil in a highsided sauté pan or dutch oven over medium-high heat. After 90 seconds, when the oil is hot, add the tofu and sauté for 8–10 minutes, stirring every 2–3 minutes, until the tofu is lightly crisped and golden on most sides.
While the tofu cooks, whisk together the tomato paste, chipotle peppers in adobo, tamari, mushroom powder, and water in a small bowl until smooth.
Once the tofu is evenly crisped, pour the sauce mixture into the pan. Stir well and cook for 2–3 minutes, allowing the sauce to lightly caramelize onto the tofu. Transfer to a bowl and set aside.
Wipe out the pan or use a separate pan to warm the olive oil over medium heat. After 90 seconds, when the oil is hot, add the diced onion and red bell pepper. Sauté for 5-6 minutes, stirring occasionally, until the onion begins to soften.
Add the garlic, oregano, cumin, turmeric, and dried chilies. Stir and cook for 1 minute to bloom the spices.
Add the diced potatoes, tomato sauce, water, brown sugar, and salt. Stir to combine and bring to a simmer.
Reduce the heat to medium-low, and cook covered for 15–18 minutes, until the potatoes are nice and tender and the sauce has thickened.
Stir the browned tofu crumbles into the the pan of tomato sauce and potatoes. Cook for 2 minutes over medium heat to warm through. Taste and adjust salt if needed.
Serve the tofu picadillo over rice, optionally removing the dried chilies, or leaving them in. Garnish with chopped green olives, sliced jalapeño or serrano, avocado slices, and cilantro leaves.