Add the raw cashews to a container and cover with hot water. Soak for 1 hour before making the sauce. While the cashews are soaking, cook the gnocchi. Fill a pot with water and salt and bring to a boil. Once boiling, gently add in the gnocchi and cook until the gnocchi floats to the top, about 2-3 minutes. Remove and set aside.
Once the cashews are soaked, add them to a blender or food processor with the clove of garlic. Process until ground. Then, add in the rest of the sauce ingredients including the water, oil, pepper, salt, and chili flakes. Blend until a smooth sauce forms and set aside.
Add ½ tablespoon of the oil to a skillet pan and turn on the heat. Once the oil is hot, add in the sliced mushrooms and cook until crispy and browned. Make sure to stir frequently to evenly cook the mushrooms. While the mushrooms are cooking, pour the other ½ tablespoon of oil onto the chopped kale and use your hands to massage it in. Then, add the kale to the skillet and cook with the mushrooms for an additional 1-2 minutes.
Finally, add in the cooked gnocchi and sauce. Mix together until coated for 1-2 minutes. Remove the pan from the heat and serve immediately. Enjoy!