Add several inches of water to a large pot with a steamer basket and bring to a boil.
In a food processor add the tofu, ketchup, nutritional yeast, soy sauce, onion powder, garlic powder, smoked paprika, mustard powder, and nutmeg. Mix until smooth as possible, stopping to scrape the sides as needed. Add the vital wheat gluten and pulse several times to incorporate, scraping the sides as needed. It will form a crumbly dough.
Turn the mixture out onto a clean work surface and knead together to form a dough. Shape into a large log that will fit in your steamer basket. Roll the log up in foil twisting the ends closed so it looks like a large candy. Place in the steamer basket and cover. Steam for 1 hour. The vegan baloney will have expanded in the foil making a tight log.
Remove from the steamer basket and allow it to cool. Move to the fridge and chill completely before serving. When ready to serve just slice an enjoy! Store in the fridge in an airtight container for up to 1 week