The first time I made this dip I burned through a whole bag of crackers in one sitting.
It’s the kind of party starter that disappears before you remember to take a photo.
Rich, layered, and easy to scale up, this baked caramelized onion dip feels fancy but is utterly forgiving.
If you like deeply savory, slightly sweet onion flavor paired with melty cheese and a tangy base, this is for you.
Pair it with toasted baguette slices, sturdy crackers, or crisp vegetables for the perfect communal snack.
For a more elevated crostini idea, try a similar topping treatment on caramelized onion and goat cheese tarts.
Why You’ll Love This Recipe
- Deep, slow-cooked onion flavor that tastes like it took all day to make.
- A crowd-pleasing, make-ahead appetizer that reheats beautifully.
- Balanced richness from cream cheese and sour cream with a sharp cheddar punch.
- Versatile: serves at game day, holiday parties, or a quiet night in.
The texture is a study in contrasts: silky, tangy dairy folded with soft, jammy onions and pockets of molten cheddar.
The parmesan adds a savory, slightly crystalline lift on top when baked, creating small golden patches that catch your fork.
The result is creamy rather than greasy, with umami notes that coax you into eating just one more cracker.
“I brought this to a holiday party and people asked me for the recipe immediately. The onions are perfectly sweet and the top gets golden and irresistible.” — 5-star reader review
Key Ingredients
Onions (2 large), thinly sliced — Onions are the heart of this dip.
Choose yellow or sweet onions for the best balance of starch and sugars; they caramelize reliably and develop that classic golden-brown jammy flavor.
Cream cheese (1 cup), softened and sour cream (1 cup) — The duo creates a rich, spreadable base.
Cream cheese brings body and structure while sour cream adds brightness and a light tang that prevents the dip from feeling cloying.
Cheddar (1 cup, grated) and Parmesan (1/2 cup, grated) — Cheddar gives melty, mellow flavor and stringy comfort.
Parmesan delivers umami and a sharper complexity; use a good-quality Parmigiano-Reggiano for the most nuanced results.
Olive oil (2 tablespoons) and garlic powder (1 teaspoon) — Olive oil is the cooking medium for the onions and contributes a fruity background note.
Garlic powder distributes easily through the cheese matrix and avoids raw garlic bite; add fresh minced garlic only if you plan to cook it with the onions first.
Full ingredient list:
- 2 large onions, thinly sliced
- 2 tablespoons olive oil
- 1 cup sour cream
- 1 cup cream cheese, softened
- 1 cup grated cheddar cheese
- 1/2 cup grated parmesan cheese
- 1 teaspoon garlic powder
- Salt and pepper to taste
- Fresh herbs for garnish (optional)
Step-by-Step Instructions
Step 1: Preheat + Prep
Preheat your oven to 375°F (190°C).
Lightly grease a medium baking dish or use a ceramic pie plate for even browning.
Pro Tip: Preheating ensures even bubbling and a golden top within the listed baking time.
Step 2: Caramelize the Onions
Heat 2 tablespoons of olive oil in a skillet over medium heat.
Add the thinly sliced onions and spread them in an even layer.
Allow the onions to cook, stirring occasionally, for about 25–30 minutes until soft and deeply golden.
If they start to stick, lower the heat and scrape up the fond; a little brown at the bottom is flavor gold.
Pro Tip: You’ll know the onions are ready when they’re soft, sweet, and reduced to about one-third of their original volume with no raw bite.
Step 3: Combine the Base
In a mixing bowl, blend 1 cup sour cream with 1 cup softened cream cheese until smooth.
Stir in 1 cup grated cheddar, 1/2 cup grated parmesan, 1 teaspoon garlic powder, and salt and pepper to taste.
Mix until everything is evenly distributed and the mixture is silky, not lumpy.
Pro Tip: Use room-temperature cream cheese so it blends smoothly; a few seconds with a hand mixer makes this effortless.
Step 4: Fold in the Onions
Add the warm caramelized onions to the cheese mixture and stir until well combined.
Taste and adjust salt and pepper—onions and parmesan can both push the seasoning.
Pro Tip: If the onions are very hot, let them cool slightly so the dairy doesn’t separate; lukewarm is perfect.
Step 5: Bake to Perfection
Transfer the mixture to your prepared baking dish and smooth the top with a spatula.
Bake in the preheated oven for 25–30 minutes until the dip is bubbly and golden on top.
You’ll know it’s done when the center bubbles gently and the edges pull away from the dish slightly.
Step 6: Rest and Garnish
Remove the dish from the oven and let it cool slightly for 5–10 minutes before serving.
Garnish with finely chopped fresh herbs if desired and serve with crackers, bread, or vegetables.
Pro Tip: A short rest helps the dip set so it scoops neatly—try to resist digging in right away.
Expert Tips for Success
-
Use medium heat for caramelizing onions. Too hot and they scorch; too low and they stew.
The sweet, brown flavor develops best around medium to medium-low and patience pays off. -
Slice onions uniformly. Even thickness ensures consistent cooking and avoids a mix of burned and undercooked pieces.
A mandoline or a sharp chef’s knife makes quick work of uniform slices. -
Don’t skip the parmesan. It adds a crystalline, savory lift that balances the creaminess.
Pre-grated cheese is convenient but freshly grated cheese melts better and tastes fresher. -
Bring dairy to room temperature. Cold cream cheese doesn’t blend smoothly, which can lead to lumps or overworking the mixture.
Remove cream cheese from the fridge 30–60 minutes before starting. -
Control moisture for a creamy, not watery dip. If your onions are releasing a lot of liquid, drain or reduce them further before folding into the cheese.
Alternatively, briefly cook the combined dip on the stovetop to evaporate excess moisture before baking. -
Equipment tip: Use an oven-proof skillet or a shallow ceramic dish.
A wider surface area creates more golden top and caramelized edges, which many people love. -
Flavor layering: Add a splash of white wine or a teaspoon of balsamic vinegar while the onions cook for complexity.
Alcohol cooks off, leaving behind acidity that brightens the sweet onions. -
Salt carefully. Both the parmesan and the cheddar add salt; season in stages and taste before the oven for the best balance.
-
Make-ahead strategy: Prepare the caramelized onions and the cheese mix separately up to 2 days in advance.
Combine and bake just before serving to preserve texture and freshness. -
For a smoky twist, add a pinch of smoked paprika to the cheese mixture or top with a few crispy bacon bits just before serving.
Storage & Freezing
Fridge: Cool the dip to room temperature, cover tightly with plastic wrap or transfer to an airtight container, and refrigerate up to 4 days.
Reheat in a 350°F oven until warmed through, about 15–20 minutes, or microwave in short bursts, stirring between, until hot.
Freezer: For longer storage, assemble the dip but stop before baking.
Wrap the baking dish tightly with plastic and foil, or transfer to a freezer-safe container, and freeze up to 3 months.
Thawing & reheating: Thaw overnight in the refrigerator.
Bake at 350°F until bubbling, about 25–30 minutes, to refresh the texture and revive the top’s golden color.
Portion freezing: Spoon cooled dip into silicone muffin cups or an ice cube tray lined with parchment to freeze individual portions.
Transfer frozen portions to a freezer bag; reheat single portions covered in the microwave or oven.
Variations & Substitutions
Caramelized onion + gruyère: Swap half the cheddar for gruyère and add a sprinkle of thyme for a Swiss-inspired twist.
This makes the dip nuttier and more complex, excellent when paired with rye crisps.
Bacon & chive: Stir in 4 strips of cooked, crumbled bacon and garnish with chives.
Bacon adds crunch and smoky fat that plays beautifully against the sweet onions.
Vegetarian swap: Replace cheddar with a tangy white cheddar or smoked provolone for depth while keeping the recipe vegetarian.
For a dairy-free version, use a cultured coconut cream base and a plant-based shreddable cheese—texture will vary.
Make it lighter: Use reduced-fat cream cheese and low-fat sour cream.
Increase onion volume slightly to compensate for any lost richness and add a tablespoon of olive oil for mouthfeel.
Spicy kick: Fold in a small diced jalapeño or a pinch of crushed red pepper flakes to the cheese mix for heat.
Adjust to taste; a little goes a long way in balancing the sweetness of the onions.
Frequently Asked Questions
Q: Can I use red onions or shallots instead of yellow onions?
A: Yes. Red onions will caramelize but have a fruitier edge and can deepen in color; shallots caramelize quickly and add a more delicate, sweet flavor.
Adjust cooking time as needed and taste-test for seasoning.
Q: How do I prevent the dip from being greasy?
A: Avoid overloading with oil during the onion caramelization. Use just enough oil to prevent sticking.
Also, ensure your cheeses are not overly oily—freshly grated cheddar melts more cleanly than pre-shredded varieties.
Q: Can I make this dip vegan?
A: You can approximate it using vegan cream cheese and sour cream alternatives plus a plant-based shredded cheese.
Caramelized onions are naturally vegan and will provide depth; expect a slightly different texture and flavor profile.
Q: Is there a stovetop version?
A: Yes. After combining all ingredients, you can gently cook the mixture in a well-seasoned skillet over low heat until warmed and bubbling.
Finish under the broiler for a minute to get a golden top if desired.
Q: How do I re-crisp bread or crackers to serve with the dip?
A: For baguette slices, brush lightly with olive oil and toast in a 400°F oven for 5–7 minutes until crisp.
For crackers, spread them on a sheet pan and warm at 300°F for 3–5 minutes to refresh and avoid sogginess.
Final Thoughts
This Baked Caramelized Onion Dip is the kind of recipe you’ll make repeatedly because it’s simple, resilient, and endlessly satisfying.
If this dip becomes your party secret weapon, please leave a star rating in the recipe card below or pin this post to Pinterest for your next gathering.
Conclusion
If you want a tried-and-true inspiration for presentation or plating ideas, see this take on a similar baked caramelized onion dip at Baked Caramelized Onion Dip – delicious party appetizer dip!.
For another baked-style onion dip that uses slightly different techniques and ingredients, check out Baked French Onion Dip | 12 Tomatoes.
Additional internal recipes mentioned above for variation and pairing:
- For a crostini pairing idea, see steak crostini with creamy horseradish and caramelized onions.
- For a potato side to serve with this dip, consider these perfectly cooked air-fryer baked potatoes.
- If you want a crunchy onion garnish, try these air-fryer crispy onions (low-fat) or the similar air-fryer crispy onions recipe.
Baked Caramelized Onion Dip
Ingredients
Vegetables
- 2 large Onions, thinly sliced Use yellow or sweet onions for best results.
Dairy
- 1 cup Sour cream Adds light tanginess.
- 1 cup Cream cheese, softened Provides body and structure.
- 1 cup Grated cheddar cheese Offers melty flavor.
- 1/2 cup Grated parmesan cheese Adds umami and complexity.
Oils & Seasonings
- 2 tablespoons Olive oil Cooking medium for the onions.
- 1 teaspoon Garlic powder Provides flavor without raw bite.
- Salt and pepper To taste Season in stages for balance.
Garnishes
- Fresh herbs For garnish (optional).
Instructions
Preparation
- Preheat your oven to 375°F (190°C) and lightly grease a medium baking dish.
Caramelizing the Onions
- Heat oil in a skillet over medium heat, then add onions and cook for 25–30 minutes until soft and golden.
Mixing the Base
- In a bowl, blend sour cream and cream cheese until smooth, then stir in cheddar, parmesan, garlic powder, salt, and pepper.
Combining Onions and Cheese
- Add the warm caramelized onions to the cheese mixture and stir until well combined.
Baking
- Transfer the mixture to the baking dish and bake for 25–30 minutes until bubbly and golden.
Serving
- Let cool slightly before garnishing with fresh herbs and serving with crackers, bread, or vegetables.
