This Tennessee Onions casserole is the ultimate cheesy Southern side dish. Sweet onions are layered with cheddar, smoked Gouda, and Parmesan, then baked until soft, bubbly, and golden brown. If you love caramelized onions and melty cheese, this easy baked onion recipe will become your new favorite comfort food.
3poundssweet onionssuch as Vidalia, about 4 large, sliced crosswise into 1/4-inch rounds
1 1/2tspkosher salt
1tspdry mustard powder
1tspgarlic powder
1tspsmoked paprika
1/4tspcayenne pepperoptional
4ouncesmild cheddar cheeseshredded about 1 cup, divided
4ouncessmoked Goudaor smoked cheddar cheese, shredded about 1 cup, divided
1/3cupParmesan cheesegrated
4tbspbutterunsalted, diced
2tbspfresh parsleychopped, optional, for garnish
Instructions
Preheat the oven to 350°F and lightly coat a 9x13-inch baking dish with cooking spray.
Place the sliced onions in a large bowl, separate into rings, and toss with salt, mustard powder, garlic powder, smoked paprika, and cayenne until evenly coated.
Arrange half of the seasoned onions in an even layer in the baking dish.
Sprinkle with half of the cheddar and half of the smoked Gouda.
Top with the remaining onions, then sprinkle with the remaining cheddar, smoked Gouda, and all of the Parmesan.
Scatter the diced butter evenly over the top.
Cover tightly with foil and bake for 45 minutes, until the onions are tender and bubbling.
Remove the foil and bake for 30 more minutes, until the cheese is fully melted and browned in spots. Garnish with parsley if desired and serve hot.
Notes
Sweet onions work best because they soften beautifully and develop a mild, caramelized flavor while baking.
Watch closely during the final minutes of baking to prevent over-browning.