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Creamy Caramelized Onion Dip Recipe

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This creamy caramelized onion dip is a flavorful and easy-to-make appetizer perfect for parties or casual snacking. Sweet, tender caramelized onions blend smoothly with cream cheese and sour cream for a rich and savory dip that pairs wonderfully with chips, crackers, or vegetable sticks.

  • Author: Chef
  • Prep Time: 10 minutes
  • Cook Time: 20 minutes
  • Total Time: 30 minutes
  • Yield: 12 servings
  • Category: Dip
  • Method: Frying
  • Cuisine: American
  • Diet: Vegetarian

Ingredients

For the Caramelized Onions

  • 2 tablespoons unsalted butter
  • 1 large yellow onion
  • 3 tablespoons water
  • ½ teaspoon salt
  • ½ teaspoon black pepper
  • ½ teaspoon onion powder

For the Dip Base

  • 4 ounces cream cheese at room temperature (½ block cream cheese)
  • ½ cup sour cream (4 ounces)

Instructions

  1. Prep Onions: Peel the large yellow onion, then cut it around the core and slice into thin strips. For a chunkier texture, you can dice the onion instead.
  2. Cook Onions in Butter: Heat a large frying pan over medium-high heat and add the unsalted butter. Once melted, add the sliced onions and stir to coat with butter. Spread the onions in a single layer and cook without stirring for 5-7 minutes to allow browning on the bottom.
  3. Add Water and Scrape: Pour in the water and use a wooden spoon to scrape up the browned bits from the bottom of the pan, stirring to distribute the flavorful caramelization.
  4. Caramelize Onions: Continue cooking the onions over medium heat, stirring occasionally. Allow the water to evaporate, adding more water if necessary, until the onions are soft, deeply caramelized, and golden brown. Remove from heat and set aside.
  5. Mix Dip Base: In a mixing or serving bowl, combine the room temperature cream cheese, sour cream, salt, black pepper, and onion powder. Whisk until the mixture is smooth and creamy.
  6. Combine and Serve: Fold the caramelized onions into the cream cheese mixture gently until fully incorporated. Serve the dip at room temperature with chips, crackers, or fresh vegetables. Enjoy!

Notes

  • For best results, use room temperature cream cheese for easier mixing and a smoother dip.
  • Be patient during caramelization; low and slow cooking brings out the onions’ natural sweetness.
  • If you prefer a milder flavor, reduce the amount of black pepper.
  • Store leftovers in an airtight container refrigerated for up to 3 days.
  • This dip is excellent served with potato chips, pita chips, or raw vegetable sticks like carrots and celery.