Combine tamari soy sauce, Asian sesame oil, and sherry in a large bowl to create the marinade.

Add the cubed and dried tofu and red pepper to the bowl.

Gently toss the tofu and red pepper with the marinade until evenly coated.

Allow the tofu and pepper to marinate for 30 minutes to 8 hours, refrigerating if marinating for longer than 1 hour.

Prepare the grill or preheat the oven to 450 degrees Fahrenheit.

To make the peanut sauce, combine coconut milk, peanut butter, minced garlic, curry powder, brown sugar, lime juice, canola oil, tamari soy sauce, and cayenne pepper in a food processor.

Blend all ingredients until smooth to create the satay sauce.

Pour the prepared sauce into a decorative serving bowl.

Remove about 1/3 cup of the satay sauce and drizzle it over the marinated tofu and red pepper.

Use a rubber spatula to gently toss the tofu and pepper with the sauce.

If grilling, thread the tofu and red peppers onto skewers, soaking bamboo skewers in water for 30 minutes prior.

If roasting, arrange the tofu and red peppers in a single layer in a large, shallow baking dish or two.

Cook the tofu skewers on a hot grill for at least 20 minutes, turning occasionally.

Alternatively, roast the tofu in the preheated oven for 25 minutes.

Cook until the tofu is deep golden brown.

Let the cooked tofu cool to room temperature before serving.

Serve the tofu satay alongside the bowl of peanut sauce for dipping.