In anon-stick large skillet or wok over high heat, add oil. Add the tofu crumble pieces and cook until golden on all sides. Remove tofu from skillet and set aside.
In the same skillet, lower heat to medium-high and add the mushrooms. Cook until golden, about 5 minutes. Set aside.
In alarge potor dutch oven over medium heat, add olive oil. Once the oil is hot, add the onion and cumin seeds. Saute for 5 minutes, or until the onion is tender. Add the garlic and cook for another 30 seconds.
Next, add the tomato paste, crushed tomatoes, chili powder, smoked paprika. Stir to combine.
Add the tofu pieces, mushrooms, and walnuts, mushroom stock, and bay leaf. Combine. Cover the pot with a lid and bring to a boil. Once at a boil, reduce heat to a simmer. Simmer for 30 minutes.
Scoop out about 1 cup of chili and blender, or use an immersion blender to blend some of the chili.