Preheat the oven to 350°F.
Drain the tofu, but do not press and break it up into a few pieces and add it to a food processor.
Add the liquid smoke, soy sauce, olive oil, cornstarch, nutritional yeast, onion powder, garlic powder, paprika, salt, and pepper into the food processor along with the tofu. Process everything into a smooth paste, stopping to scrape down the sides of the bowl as needed to ensure everything is incorporated evenly.
Next, add the vital wheat gluten and run the food processor to combine all ingredients and knead the dough. The dough will go through a few phases: first, it will come together; then it may appear to crumble apart. Keep processing and eventually the gluten will develop, and it will come together into a firm dough again.
The dough should be firm enough to form a ball. The dough should not be so wet that it sticks to the bowl of the food processor. If the dough is still sticky, add 1 tbsp of vital wheat gluten, at a time, processing to combine between additions, until a firm dough is achieved.
Remove the dough to a clean surface. Knead it a few times times, and shape it into a log.
Next, wrap the seitan in a layer of parchment, twisting off the ends to ensure a log is formed. Follow this with a layer of aluminum foil, twisting the ends off also, to seal in the dough. Make sure the edges of the foil overlap each other by at least a few inches, otherwise, the loaf might burst out of the seam as it expands during the cooking process.
Place the wrapped loaf on a baking tray. Cook in the preheated 350°F for a total of 1 hour. I rotate the loaf by 90° every 15 minutes so that a new section is on the bottom each time. This prevents the spice blend from burning, or the bottom of the loaf from getting overly dark or dry.
When the loaf is done cooking, remove it from the oven and, without unwrapping it, allow it to come to room temperature on the counter. Once it has cooled, place it in the fridge to chill for a few hours or overnight. You can eat it while still warm, but the texture improves and it is easier to slice when chilled, especially if you're going for thin deli slices.
Store in an airtight container fridge for up to 7 days. Or you can freeze a portion of this for up to 3 months.