1. The night before preparation, in a small bowl blend peanut butter, water, soy sauce, sherry, lemon juice, and brown sugar. (I heat the peanut butter in the microwave prior to adding other ingredients to "liquefy" the peanut butter. It blends much easier that way)
2. Marinate the tofu in 1/2 the peanut sauce over night. Cut the tofu into thin strips length wise and then in half width wise. This coats the tofu nicely for pan searing the next night. Reserve the other 1/2 the marinade to pour over the stir fry.
3. In a large skillet or wok, heat the oil over high heat. Add the garlic and crushed red pepper, stir fry 30 seconds. Add the marinated tofu being sure to include as much of the marinade as possible (a lot of it will be absorbed by the tofu). Sear the tofu on each side (about 5-10 minutes each side).
4. Add veggies and stir fry until they just begin to soften but are still a little crunchy (about 5 minutes). Stir in the other 1/2 of reserved peanut sauce and chili sauce until sauce is smooth. (about 3-5 minutes) Serve and enjoy! Yummy!