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hot caramelized onion dip with bacon & gruyere

hot caramelized onion dip

I mentioned a couple of days ago that we were putting up our Christmas decorations that afternoon. We did…and it was just as fun as it is every year. I made a batch of Christmas Cocktails (with a smidge of bourbon in ours, of course!), some tasty hot caramelized onion dip with bacon and gruyere and we set the girls loose.

christmas tree decorations

Why is it so much more fun to watch them decorate?

This dip was perfect for our little Christmas fiesta. Warm and gooey and quite filling, it was nice to have it to devour snack on while we got everything organized. I’m such a huge fan of caramelized onions – I could eat a bowlful with nothing else – adding a little bacon and cheese just makes it even better. I sliced a soft french bread into thin slices then toasted them, a bit like large crostini. This dip would go great with crackers, too. It’s delicious but heavy, so some grapes or sliced apples on the side would be a nice complement.

hot onion dip

I first found the recipe through Pinterest and included it in a post that included some delicious looking dips I wanted to try. Like most recipes I want to make, this one only took me about a year to get to! I made it better adapted it slightly by adding more bacon and cheese, some light brown sugar and plain ol’ sherry instead of sherry vinegar. A cast iron pan is your best choice here, but any oven safe skillet would work (or just transfer to a pretty baking dish for oven time).

hot onion dip

What about you? Have you taken the Christmas decoration plunge or are you holding out awhile longer?

Hot Caramelized Onion Dip with Bacon & Gruyere

  • 5 slices bacon
  • 2 sweet onions, halved and thinly sliced
  • 1 large pinch salt
  • 1 T light brown sugar
  • 1 T sherry
  • 1/2 cup mayonnaise
  • 1/2 cup sour cream
  • 1 1/2 cup shredded Gruyere cheese, divided
  1. Preheat oven to 400F.
  2. Heat an oven-safe large skillet (preferably cast iron) over medium-high heat. Cook bacon until crispy. Remove bacon and place on paper towels; set aside.
  3. Reduce heat to medium-low. Place thinly sliced onions in bacon fat in skillet; sprinkle with salt and brown sugar and stir until onions are coated. Cook until very soft and golden brown; about 20-30 minutes. Add sherry and scrape up any bits stuck to pan (deglaze). Turn heat to high and cook for 2 minutes, or until liquid has mostly evaporated.
  4. Mix mayo, sour cream and 1 cup cheese in a small bowl. Add to onion mixture and stir well. Add bacon, stir well and spread into even layer in skillet. Sprinkle remaining cheese over the top.
  5. Bake for 15 minutes or until bubbling and lightly browned on top. Serve with crostini or crackers.


Kristy Bernardo
Latest posts by Kristy Bernardo (see all)

Anne Boyd

Thursday 10th of December 2020

Absolutely delicious. This will be my go to dip. Reheats well, unless you eat it all when you make it.

Kristy Bernardo

Saturday 12th of December 2020

Thanks, Anne! I love this one because it's different from most other dips. So glad you loved it and thank you for taking the time to let me know. Cheers :)

Buffalo Chicken Dip with Skillet Bread -

Thursday 6th of November 2014

[…] Caramelized Onion Dip with Bacon & Gruyere […]


Saturday 4th of October 2014

Hi, I know I'm late to this post, but this looks so delicious! My question is, how crucial is the sherry to the recipe, and could I skip it or use something in place of it. I hate to buy a whole bottle and not use it. I know though that sometimes, that even a small amount can be crucial to the taste. What are your thoughts?

Kristy Bernardo

Sunday 5th of October 2014

I would say that sherry is pretty crucial. It's subtle yet important. Do they sell sherry in those little one-serving bottles? Or can you borrow a little from a friend or neighbor? If you live in Northern VA you can swing by my place, I have a huge bottle!


Monday 31st of December 2012

I want to steal your whole decorating tradition, drinks dip & all! This looks amazing. Hope you and your family had a wonderful holiday! Happy new year to you!

the wicked noodle

Friday 4th of January 2013

Thanks so much, Aggie! Wishing you and your family a wonderful New Year!


Tuesday 11th of December 2012

This dip sounds like heaven in a bowl! Perfect for holiday entertaining!

the wicked noodle

Tuesday 11th of December 2012

Thanks Katie!