Remove excess water from tofu by wrapping the block in a clean kitchen towel or a few paper towels. Place under a couple heavy cookbooks or a cast-iron pan while you prepare the other ingredients.
Making the cashew cream: Place the cashews, dairy-free milk*/water, and salt in a high-power blender and process until smooth, thick, and creamy ~1 minute.
Using your hands or a fork, crumble the tofu into small pieces in a medium bowl.
Add lemon juice, nutritional yeast, minced garlic, onion powder, salt, and basil. Mix well. Taste for flavor and make adjustments as desired.
Pour in ¼ cup cashew cream and stir to combine. Add more cashew cream as desired for creaminess.
Add a sprinkle of hot pepper flakes (optional).
Store in a covered container in the fridge for 4 or 5 days or freeze in an airtight container for a month.