In a small bowl stir together water, sherry, soy sauce, cornstarch, chili sauce, and sugar; set aside.
In a large nonstick skillet or wok heat oil over medium-high heat. Add eggplant and sweet pepper. Cook for 3 to 4 minutes or until eggplant is just tender, stirring often. Remove eggplant mixture from skillet. Add ginger and garlic to skillet and cook for 1 minute. Stir sauce and add to skillet. Cook and stir until thickened and bubbly. Cook and stir 1 minute more. Add eggplant mixture and tofu to skillet; gently stir to combine and heat through. Serve over rice. Garnish with cilantro or basil leaves.