When I first started cooking, I had the hardest time getting this right, but now that I have this all figured out, perhaps I can spare you a little bit of headache.
First, your heat setting should be on the lower end; all stoves are not made equal, so you'll just have to figure out what works for you. I have a gas stove and do all of my cooking on like a finger away from low. For onions, it's even lower.
First, I would love to say get a great nonstick pan, it's wroth the money, and in theory this is true, but in reality, non-stick pans are REALLY, REALLY bad for your health. Click here to learn more. I honestly don't understand why the government is allowing this practice of basically slowly poisoning our bodies. The use of such harsh chemicals should be outlawed; the faster, the better.
I have purchased what I have found to be the safest cookware from here. Don't get carried away on that site, after all, all the guy wants to do is push a bunch of products you probably don't need, but there are a few interesting things you can find on there. Anyway... back to the onions.
Start by chopping them with a sharp knife, meanwhile your skillet should be warming up.
When you're ready, throw the onions into the skillet and pour a little bit of olive oil on top, then mix everything so that the onions become coated with the oil. Another great option is coconut oil. What you don't want to use are vegetable oils.
A bit about onions; most of the good stuff is right under the paper thin skin, so don't peel the next thing down or you'll loose a lot of what makes onions good for you.
Cover the onions and wait about two-three minutes, until they start getting hot. You can then start playing around with them constantly making sure that they don't burn, or here's the trick... have some hot water handy and pour a little bit in the middle of your onions, not stirring the water in; cover the onions promptly and wait another two, three minutes. The steam will soften your onions pretty quickly, and then it will slowly evaporate, which is what you want... now you're back to just the onions and the oil, but the onions are soft.
Take off the lid and keep moving things around so that the onions caramelize, but don't burn.
If you feel that you need to repeat, go ahead. If you feel that the onions are just soft enough, add some salt to taste and move things around for a bit longer so that all the flavors mesh together.
(Like I said, you'll need to figure out how your stove works, but you should be able to figure that out pretty quickly.)
That's it. Perfect sautéd onions every time.
By the way... you can slice the onions into rings as well, or however you'd like to have them look.

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