Step 1

In a large pan or skillet over medium-low heat, heat bacon drippings or butter until melted, then add thawed pearl onions to pan.

Step 2

Season with salt and pepper, then sprinkle sugar over onions and cook, stirring frequently, for 3-5 minutes.

Step 3

Pour balsamic vinegar and water into pan, then reduce heat to low and cover, cooking for 20-25 minutes, stirring occasionally, until softened and caramelized.

Step 4

Taste and adjust seasoning, if necessary, then serve hot.