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Steam or boil the potatoes for 20 mins or until tender. Cut the pressed tofu into 4 rectangles, then splice each rectangle in half, like cutting a deck of cards. Lay the slices on a plate and sprinkle over the soy sauce. Set aside for 5 mins.
Meanwhile, make the salsa verde. Put the garlic, basil, capers, oil and sugar into a food processor with 3 tbsp lemon juice. Pulse until roughly chopped. Stir in the olives and season with pepper and a little salt.
Put the flour on a plate and season with pepper. On another plate, mix the Parmesan and lemon zest into the breadcrumbs. Beat the egg, mustard and 2 tsp water in a wide bowl. Pat 1 slice of tofu in the flour, then dip into the egg and coat with the breadcrumbs. Set aside. Repeat process until all the tofu is coated.
Heat the vegetable oil in a wide frying pan over a medium heat. Fry the tofu gently until golden brown, about 5 mins each side. Slice into finger-width strips with a serrated knife, then mix together with the watercress and potatoes. Spoon over the salsa verde, drizzle over a little extra olive oil, and serve with lemon wedges on the side.