In a large, heavy skillet over medium heat, melt the butter. Add the onion and 1/2 tsp. salt, stir to coat, cover, and reduce the heat to medium low. Cook for 10 minutes, stirring once or twice, using the onions to sweep the pan as you stir.
Uncover the pan, add the broth and thyme, and cook, stirring occasionally, until the onions are very soft and the liquid has evaporated, about 15 minutes. Add the sherry, increase the heat to high, and stir until the alcohol cooks off, about 30 seconds. Season to taste with salt.
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