Add water, oil, ketchup soy sauce, salt, garlic powder, onion powder, paprika, and a handful of fresh basil to a saucepan and heat until it starts to boil, then turn off the heat and allow it to cool for about 15 minutes.
Press a block (14 oz.) of tofu and crumble it into a food processor or blender, then remove the basil leaves from the broth and pour the broth into the food processor along with the tofu.
Blend until it turns to a creamy thick liquid.
Pour into a glass bowl.
Add 1 cup of vital wheat gluten and mix well until a thick dough forms.
Add another 1/2 cup of vital wheat gluten and knead it into the dough until all of the wheat gluten has been absorbed and no longer feels wet. (You may have to add an additional tablespoon or two of wheat gluten until the dough is firm enough to hold its shape.)
Form the dough into the shape of hot dogs, and wrap them tightly in foil. (It will expand slightly, so make it a little smaller than what you want the final hot dog to look like.)
Steam the wrapped hot dogs in a large pot with a steamer basket for 45 minutes. (You can also use a pressure cooker or Instant Pot. Cook under pressure for 35 minutes and then allow steam to release naturally.)
Take them out of the pot with tongs and allow them to cool for about 10 minutes before opening the packets. (I always get too excited to see my hot dogs and get burnt with the steam when I open the foil too soon.)
At this point, they are ready to eat, or you can grill, boil, or fry them. Serve them on a bun with mustard, ketchup, relish, vegan honey mustard, vegan chipotle mayo, vegan nacho cheese sauce, or any other toppings that you like.
Notes
Knead the seitan until all of the gluten flour is incorporated and you have a dough that's a little firmer than you would have for bread. Only knead it for about 30- 60 seconds so your wheat meat doesn't get too chewy.
If you want perfectly formed hot dogs, wrap the dough in the desired shape in plastic wrap and allow it to rest for 30 minutes before taking off the plastic and wrapping it in foil.
If you don't want the foil to touch your food, you can wrap the vegan hot dogs in parchment paper first, and then wrap the foil around that.