The invention relates to method of preparing spongy soy protein and soy oil containing flakes from full fat, enzyme active soy flakes. The inventive method comprises preparing a hot coagulating solution, such as a Nigari salt solution; mixing the full fat, enzyme active soy flakes with the hot coagulating solution, at a temperature and for a time sufficient to deactivate enzymes and other beany- or off-flavor causing constituents, and to precipitate the soy protein in the soy flakes in situ in and on the flakes to form spongy coagulated soy protein and soy oil containing flakes; separating the spongy coagulated soy protein and soy oil containing flakes from the coagulation whey solution; and, washing the separated spongy flakes to remove residual whey solution and any excess salt. Washing can result in white, fluffy, bland tasting spongy flakes. The inventive spongy flakes are excellent as meat extenders and replacers. The spongy flakes can be used, for example, in tacos as a refried bean and meat replacement with excellent taste and texture. The spongy nature of the flakes allows for the addition and absorption of desired flavor and spice constituents.