1 lb. yellow or sweet onions, diced small (2-3 medium onions)
1 tablespoon unsalted butter
1 small shallot, minced
3 tablespoons dry sherry (or sub. white wine)
1 ½ cups sour cream
4 oz. cream cheese, softened
1 teaspoon garlic powder
1 teaspoon onion powder
2 teaspoons dried minced onion flakes
2 teaspoons flour
¼ teaspoon Worcestershire sauce
½ teaspoon fresh thyme
Salt and pepper, to taste
4 oz. Gruyere cheese, shredded
Potato chips (for serving)
Cook the chopped bacon until crisp. Once crispy, remove the bacon from the pan with a slotted spoon and transfer to a plate lined with paper towels to drain excess grease. Carefully wipe out excess grease from pan if necessary (keeping about 2-3 teaspoons or enough to just barely coat the bottom of the pan).
Caramelize the diced onion: In the same pan, add the onions and cook over medium-low heat until soft and translucent. Continue to cook the onions over medium-low heat until they slowly begin to caramelize* After about 30 minutes, add the butter and minced shallot, and cook for about 15 more minutes until the onions are a deep brown color. Finally, add the sherry and deglaze the pan (scrape up all the stuck on bits with a wooden spoon or rubber spatula). Set the caramelized onions aside to cool slightly, and preheat oven to 400 degrees F.
In a mixing bowl, combine sour cream, cream cheese, garlic powder, onion powder, dried onion flakes, flour, Worcestershire, thyme, salt and pepper. Mix in the cooled bacon and caramelized onions.
Transfer the dip mixture to a large, shallow broiler-safe dish and top with shredded cheese. Bake for 10-15 minutes, until cheese is melted and bubbly. Turn on the broiler for last 1-2 minutes until cheese starts to brown on top*
Serve warm with kettle-cooked potato chips, crackers, or toasted bread.
When caramelizing onions, be patient and let them cook low and slow for maximum flavor. If the onions start sticking to the pan and burning, add a splash of water as needed. You can find more helpful tips on caramelizing onions in the blog post above.
Once the cheese is fully melted, first, blot the top with paper towels to absorb any excess grease. Then, turn on your oven's broiler setting to lightly brown the top cheese layer. I used the low setting on my oven, but you may want to use the high setting if the oven rack is further away from the heating element. Be sure to get rid of excess grease before broiling and keep the dish at least 4-6 inches from the heating element to avoid fire!
If you’re not sure if your dish is broiler safe but it’s safe at high temperatures in the oven, you can skip the broiler step and instead bake at the highest temperature your dish recommends (425-450 degrees) to try to brown the cheese.