Seitan Makhani (Vegan-Style Indian Butter Chicken)

1 tablespoon peanut oil

1 shallot, finely chopped

¼ cup onion, chopped

2 tablespoons vegan margarine

2 teaspoons lemon juice

1 teaspoon ground ginger

2 cloves garlic, minced

2 teaspoons garam masala

2 teaspoons curry powder

1 teaspoon chili powder

2 teaspoons ground cumin

1 bay leaf

1 cup tomato puree

1 cup soy milk

¼ cup plain vegan yogurt

¼ teaspoon cayenne pepper, or to taste

1 pinch salt and black pepper to taste

1 ½ teaspoons peanut oil

1 (16 ounce) package chicken-style seitan, cut into strips or cubes

2 teaspoons garam masala

1 pinch cayenne pepper

1 tablespoon cornstarch

¼ cup cold water

Heat 1 tablespoon peanut oil in a saucepan over medium heat. Stir in the shallot and onion; cook and stir until the onion has softened and turned translucent, about 5 minutes. Add the margarine, lemon juice, ginger, garlic, garam masala, curry powder, chili powder, cumin, and bay leaf. Cook and stir for 1 minute. Stir in the tomato puree and cook for 2 minutes more.

Reduce the heat to low, and mix in the soy milk and soy yogurt. Simmer for 10 minutes, stirring frequently. Season to taste with cayenne, salt, and black pepper; remove from heat and set aside.

Heat 1 1/2 teaspoons of peanut oil in a heavy skillet (preferably cast iron) over medium heat. Add the seitan and cook, stirring constantly, for 10 minutes. Reduce the heat to low and season the seitan with 2 teaspoons garam masala and a pinch of cayenne. Stir in about a 1/4 cup of the tomato-yogurt sauce and simmer for 2 to 3 minutes. Transfer the seitan mixture to the saucepan.

Mix the cornstarch and cold water. Return the saucepan to the stove over medium-high heat. Stir the cornstarch mixture into the sauce. Bring to a boil; reduce the heat and simmer until the sauce has thickened, about 5 to 10 minutes.