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Cut tops and bottoms off onions; set on the root end and cut onions in half vertically. Slice onion halves from top to bottom into 1/2-inch-thick pieces. In a 6-qt. electric multicooker use sauté setting on high to melt butter. Cook 2 minutes or until butter begins to brown. Press cancel setting. Add onions, thyme, 1 tsp. kosher salt, and 1/4 tsp. black pepper; stir to combine. Lock lid and adjust steam valve to seal. Set cooker on high pressure to cook 2 minutes. Immediately release pressure. Carefully open lid.
Drain off and discard excess liquid in multicooker pot. Return pot to multicooker. Use sauté setting on high to cook onions 12 minutes or until onions begin to brown and there are browned bits on bottom of pot, stirring only twice.
Discard thyme sprigs (if using). Add the water; cook 2 minutes or until liquid is mostly evaporated, stirring to scrape up browned bits. Makes 2 cups.