This caramelized shallot dip is rich, creamy, and full of sweet, deeply caramelized shallots. Greek yogurt adds protein and a tangy flavor, and the dip tastes even better after chilling.
Sauté the shallots: Heat the butter and olive oil in a pan over medium-low heat. Add the sliced shallots and 1/2 teaspoon kosher salt, stirring to coat. Cover and cook for 10 minutes to draw out moisture.
Caramelize: Uncover and continue cooking, stirring every few minutes, for about 30 minutes or until deeply caramelized. If the shallots start to stick or brown too quickly, lower the heat and add a splash of water to deglaze.
Deglaze with sherry: Pour in the sherry and stir, scraping up any browned bits. Cook for 2 minutes until the liquid evaporates.
Season the mixture: Stir in the garlic powder, onion powder, remaining 1/2 teaspoon kosher salt, and black pepper. Remove from heat and let the mixture cool slightly.
Combine the dip: In a bowl, add the Greek yogurt. Fold in the caramelized shallots and mix well. Stir in the chopped chives. Taste and add more salt and pepper if needed.
Chill and serve: Cover the bowl and refrigerate for at least 2 hours or overnight to let the flavors develop. Before serving, let the dip soften at room temperature. Garnish with extra chives and serve with ridged potato chips or your favorite dippers.
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Notes
Shallots vs onions: Shallots give the dip its signature sweetness and depth, but yellow onions work if needed. For a more classic French onion dip flavor, caramelize one sliced onion along with the shallots.
Sherry substitutes: White wine or a small splash of vinegar both work if you don’t have sherry or prefer to avoid alcohol.
Yogurt texture: Full-fat Greek yogurt makes the creamiest, richest dip. A 2 percent yogurt keeps it lighter and tangier but still works well.
Make ahead: The flavor develops as it rests. You can make the dip up to 2 days in advance.
Storage: Store in an airtight container in the fridge for up to 4 days. Stir before serving.