Step 1

Cut the bacon into half-inch slices and add them to a large frying pan. Don’t worry if the bacon pieces stick together, they will come apart as they cook. Cook over medium-high heat for about 10 minutes, stirring frequently until the bacon is cooked but still quite chewy. A few crispy bit are ok. Use a slotted spoon to remove the bacon from the pan.

Step 2

Pour out all but 1 tablespoon of the bacon drippings. Add the onions to the pan and cook for about 8-10 minutes then reduce the heat to low. Add the sugar and stir. Continue to cook until the onions have caramelized, about 20 minutes.

Step 3

Add the reserved bacon, coffee, and water and increase the heat to medium. Continue to cook, stirring about every five minutes, until the onions are thick and jam-like, about 30 minutes. Remove from heat and stir through the balsamic. Taste for seasoning and salt if necessary.

Step 4

Use immediately or refrigerate for up to a week. Bring back to room temperature before serving. There will be little spots of white fat when you take it out of the fridge. As the jam comes to room temperature, these will disappear.