Cut the yellow squash into 1/2-inch thick rounds as specified. Dice the onion into 1/4-inch pieces and mince the garlic. Having all ingredients prepped and ready ensures smooth cooking and prevents the squash from overcooking while you're still cutting. Set everything aside in separate bowls or on a cutting board.

Heat the olive oil in a large skillet or sauté pan over medium heat. Once shimmering, add the diced onion and sauté for 2-3 minutes, stirring occasionally, until softened and fragrant. Add the minced garlic and cook for another 30 seconds until aromatic. This builds a flavorful foundation for the dish by allowing the onion and garlic to release their natural sweetness and depth.

Add the yellow squash rounds to the pan with the sautéed aromatics from Step 2. Sprinkle the chicken-style seasoning, nutritional yeast, and smoked paprika over the squash. Pour in the 1/3 cup water and stir gently to combine all ingredients and coat the squash evenly with the spices. I like to use nutritional yeast here because it adds a subtle savory depth that mimics a creamy, umami-rich sauce while keeping the dish completely vegan.

Reduce heat to medium-low and simmer for 5-8 minutes, stirring occasionally to prevent sticking and ensure even cooking. The squash should become tender but still hold its shape. Watch the liquid level as it simmers—if the pan looks dry or the squash begins to stick, add a splash more water (a tablespoon or two) to keep everything moist and cohesive. The goal is a lightly sauced vegetable side dish, not a wet braise.

Remove the pan from heat and taste the squash. Season with salt to your preference—start with 1/4 teaspoon and adjust as needed. The nutritional yeast and chicken-style seasoning already add significant flavor, so taste before adding too much salt. Serve warm as a side dish, and enjoy the tender squash with its lightly seasoned, creamy-textured sauce.