Take the cream cheese out to soften. Pro tip: unwrap the cream cheese while it is cold and easier to deal with.
8 Oz. Cream Cheese
Dice the onion into 1/2 inch squares.
1 Large White, Yellow or Sweet Onion
Add the onion, butter, olive oil, (optional) sugar and a heavy pinch of salt into a pot over medium heat.
1 Tbsp Butter, 1 tsp Olive Oil, 1 Heavy Pinch Sugar, Salt and Pepper to Taste
Cook/caramelize the onions for 45 minutes to an hour, stirring occasionally. The onions will begin to darken and shrink in volume as their moisture cooks out. Watch them more carefully as they get closer to the end of cooking time. The goal is to caramelize, but not char/burn, them. The onions are finished when they are about a quarter of their original volume, a deep caramel color, and almost jelly-like in texture. Once the onions are cooked, mix them in a separate bowl with the cream cheese, onion powder and a pinch of pepper.
1/4 tsp Onion Powder
Taste one last time for salt and pepper.
You can serve the schmear warm right away, but my preference is to let it chill a couple hours and let the flavors meld. Serve on top of bagels or toast, or as an extra rich layer inside a grilled cheese or hot sandwich.