Warm the pan. Set a large, deep skillet over medium heat.
Add olive oil. When it shimmers, add the onion and a pinch of salt. Cook 3–4 minutes until softened and slightly translucent.
Add aromatics. Stir in the garlic and red pepper flakes.
Cook 30–60 seconds until fragrant. Don’t let the garlic brown.
Toast the tomato paste. Add tomato paste and cook for 1–2 minutes, stirring, until it darkens slightly. This deepens the flavor.
Build the sauce. Pour in crushed tomatoes and vegetable broth.
Add oregano, sugar, and a few grinds of pepper. Simmer for 5–7 minutes, stirring occasionally.
Make it creamy. Lower the heat and stir in coconut milk or cashew cream. Add balsamic if using.
Simmer another 3–4 minutes to meld flavors. Taste and adjust salt, pepper, and sweetness.
Cook the gnocchi. If using shelf-stable gnocchi that can cook in sauce, add it directly to the skillet and stir. If the package calls for boiling, cook in salted water until they float (1–3 minutes), then transfer to the sauce.
Add a splash of broth if the sauce gets too thick.
Finish with basil. Stir in chopped fresh basil and nutritional yeast or vegan Parmesan, if using. Let everything bubble together for 1–2 minutes. The gnocchi should be tender and coated in a glossy, creamy sauce.
Final touches. Drizzle with a teaspoon of olive oil and add lemon zest or a tiny squeeze of lemon if you like a brighter finish.
Serve hot with extra basil on top.