The Tora doesnt forbid transsexuality. 1. The Tora forbids idolatrous sex rituals. 2. The Talmud forbids male-male anal sex. Everything else is an opinion. Leviticus says literally: "You will not lie the lyings of a woman with a male: it is an idolatrous-ritual". Per Tora, the "lyings of a woman" refers to a specific Canaanite "idolatrous ritual" (Toeva). The Tora's mitsva doesnt apply to transsexuals unless they perform an idolatrous sex ritual. Per Talmud, Jewish male-to-female transsexuals may need to avoid anal sex. But after surgery, the newly formed vagina doesnt constitute an anus, and the vaginal sex is permissible. More importantly, male-to-female transsexuals ARE WOMEN! If anything, before the operation, the transgendered are "hermaphrodites" with a male body and a female brain. But after the surgery, they are a female brain with a female body: women.
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from the article: Reform Movement publishes blessings for sex change operation