Wrap the tofu in paper towels and place a weight on top to press out excess moisture for at least 15 minutes. Then, cut it into 1-inch cubes.
In a medium bowl, combine Kashmiri red chili powder, salt, black pepper, ginger paste, garlic paste, vinegar, water, and cornstarch. Add the tofu pieces and coat them well. Let the tofu marinate for 10 minutes while you prep the vegetables.
Preheat the air fryer to 400°F for 5 minutes. Lightly spray the bottom of the air fryer basket with oil. Arrange the tofu pieces in the basket, ensuring not to overcrowd them for a crispy texture. Lightly spray oil over the tofu.
Cook at 400°F for 10 minutes. Once done, remove the air-fried tofu and set it aside.
Heat 1 tablespoon of oil in a medium pan over medium heat. Add white scallions, ginger, garlic, and green chili, and sauté for 1-2 minutes until the garlic turns light golden and aromatic.
Add the onions and peppers and sauté for another 2-3 minutes until slightly softened.