Blanch atsuage in boiling water for about 1-2 minutes to remove excess oil. Drain well and pat dry. Cut each piece into halves or quarters.
In a medium pot, combine dashi stock, soy sauce, mirin, sake, and sugar. Bring the mixture to a simmer over medium heat.
Add the prepared atsuage to the simmering sauce. Place a small lid (otoshibuta) directly on top of the atsuage, or use parchment paper with a hole in the center, to ensure even cooking and flavor absorption. Simmer for 10-15 minutes on low heat, or until the atsuage has absorbed the flavors and is tender.
Remove from heat. Dish out the Atsuage Nii into serving bowls. Garnish with thinly sliced green onion before serving.
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