Peel the potatoes. Bring water to a boil over high heat in a medium saucepan and add the potatoes. Boil them for about 30 minutes, until they are tender when a fork is inserted. Drain the potatoes and let them cool.
On a large cutting board or work surface, dice the cooked potatoes until the pieces are very small.
Add the flour, nutritional yeast, olive oil, and salt to the potatoes.
Combine the mixture with your hands and knead until the mixture forms a dough. Keep kneading the dough, flipping it over and turning it for about 15 minutes, until all the lumps are removed.
Add a handful of flour to the work surface. Divide the dough into four sections.
Using both hands, roll each section into a long, cord-size piece about 16 inches long. Cut the cords into ½-inch pieces.
Roll the ½-inch pieces between your hands and gently place them on the wood pasta board. Make a slight indentation with your thumb and roll them gently into a gnocchi shape using the grooved wooden pasta board or the tines of a fork. Repeat with the other sections of dough.
Bring a large pot of water to a boil over high heat. Carefully add the gnocchi and boil for just a few minutes, until they float to the top of the water.
Drain the gnocchi in a colander. Transfer them to a serving plate and drizzle them with olive oil.
Pour the tomato sauce over the gnocchi and sprinkle with Macadamia Parmesan.
Garnish with basil and pepper.