First Step: Prep and Caramelize the Onions: Start by melting the butter in a frying pan over medium heat. Add the diced onions, salt, black pepper, onion powder, and cayenne or paprika. Stir to coat and cook for about 5 minutes until the onions soften. Then reduce the heat to medium-low and continue cooking, stirring occasionally for 20 to 25 minutes to slowly caramelize the onions until sweet, golden, and evenly browned without burning.

Second Step: Deglaze and Cool: Optionally, add a splash of water or vinegar to the pan while scraping the browned bits from the bottom to deglaze and intensify the onion flavor. Transfer the caramelized onions to a bowl and let them cool completely to prevent melting the cream cheese in the mixing stage.

Third Step: Mix the Creamy Base: In a separate mixing bowl, combine cold, cubed cream cheese with the sour cream and mayonnaise. Use a hand mixer or whisk to blend until smooth and creamy. If necessary, soften the cream cheese slightly with brief microwave bursts to ease mixing.

Fourth Step: Fold in Caramelized Onions: Gently fold the cooled caramelized onions into the creamy mixture to keep texture intact. Mix thoroughly but carefully to distribute onions evenly.

Fifth Step: Season and Chill: Adjust seasoning by tasting and adding more salt, pepper, or optional vinegar, fish sauce, or soy sauce for a deeper umami flavor as desired. Cover and refrigerate the dip for at least 2 hours to allow flavors to meld overnight refrigeration enhances richness and complexity.

Final Step: Serve and Garnish: Before serving, bring the dip to room temperature for optimal flavor. Garnish with chopped fresh chives if desired. Serve traditionally with plain, ridged potato chips or fresh vegetable crudité for a lighter option.