Place flour in a bowl and add water; knead for about 10 minutes or until a smooth elastic dough is formed.
Submerge the dough in water and use to wash the dough. Repeat the process until the water runs clear. (This may be done 10 to 15 times). The gooey substance remaining is the actual protein in the flour.
Poach this in water at a temperature not exceeding 180°C/350°F for 20 minutes. Allow to cool in the water. Drain and dice into 3/4 inch pieces.
Soak the mushroom in hot water for 1 hour, remove the stems, then slice and set aside.
Heat the peanut oil in a skillet over medium flame. Add the peanuts and cook until golden brown.
Add the gluten and mushroom and cook for one minute. Deglaze the pan with soy sauce and season with sugar to taste. Add the sesame oil, escallion and peppers and continue to cook for two minutes.
To Serve: Serve with a starch and vegetable salad of your choice.