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Ultimate Creamy Caramelized Onion Dip for Game Day

A spoonful of hot, cheesy caramelized onion dip showing a dramatic cheese pull over a white bowl.

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Make this rich, homemade caramelized onion dip that surpasses any store-bought version. It is the best party dip for chips, crackers, or vegetables.

Ingredients

Scale
  • 3 large yellow onions, thinly sliced
  • 2 tablespoons olive oil
  • 1 tablespoon unsalted butter
  • 1 teaspoon kosher salt, plus more to taste
  • 1/2 teaspoon granulated sugar
  • 1/4 cup dry sherry or beef broth
  • 8 ounces cream cheese, softened
  • 1 cup sour cream
  • 1/2 teaspoon black pepper
  • 1/4 teaspoon garlic powder
  • 1 tablespoon fresh thyme leaves (optional)

Instructions

  1. Heat olive oil and butter in a large, heavy-bottomed skillet over medium-low heat. Add the sliced onions and 1 teaspoon of salt.
  2. Cook the onions slowly, stirring every 5 to 10 minutes, for 40 to 50 minutes until they are deeply browned and sweet. Do not rush this step; low and slow creates the best flavor.
  3. Stir in the sugar during the last 10 minutes of cooking.
  4. Pour in the sherry or broth to deglaze the pan, scraping up any browned bits from the bottom. Cook until the liquid evaporates, about 3 minutes. Remove the onions from the heat and let them cool slightly.
  5. In a medium bowl, combine the softened cream cheese, sour cream, black pepper, and garlic powder. Mix until smooth.
  6. Fold the cooled caramelized onions and fresh thyme, if using, into the cream cheese mixture. Mix until just combined.
  7. Taste the dip and add more salt or pepper if needed.
  8. For the best flavor, cover the dip and chill in the refrigerator for at least 2 hours, or up to 2 days. This allows the flavors to meld.
  9. Serve this ultimate savory dip cold or slightly warmed with your favorite chips and crackers.

Notes

  • For a warm onion dip, transfer the mixed dip to an oven-safe dish and bake at 350°F (175°C) for 15 minutes until heated through.
  • If you want a richer flavor, substitute 1/4 cup of the sour cream with mayonnaise.
  • This recipe makes a fantastic base for a caramelized Gruyere dip; stir in 1/2 cup of shredded Gruyere cheese before chilling.

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