Press the tofu and drain excess water. Cut into small cubes.
Pan-Fry Tofu (Optional):
In a large skillet, heat one tablespoon of oil over medium-high heat, cook the tofu cubes until browned. You may need to do this in multiple batches. Set aside.
Cook the Sauce Base:
In a large dutch oven, melt butter over medium heat. Add onion, garlic, jalapeño pepper, green bell pepper, cumin, cayenne pepper, then cook until soft (for about 4-5 minutes). Keep stirring to prevent burning.
Simmer the Tofu in Rancheros sauce:
Add broth, tomato sauce, and tofu. Bring to a simmer then lower the heat. Cook until the sauce is thickened like a stew for about 30 minutes. Be sure to stir frequently to prevent burning. Adjust seasoning with salt and pepper if needed.