In a large skillet, melt the 2 tablespoons of unsalted butter over medium heat. Add the 2 large chopped sweet onions and sauté them until they become soft and caramelized, about 10-15 minutes. Stir occasionally to ensure they don’t burn.
While the onions are cooking, take a mixing bowl and combine the 1 cup of mayonnaise, 4 ounces of softened cream cheese, 1 teaspoon of garlic powder, 1 teaspoon of dried thyme, and 1 teaspoon of salt. Mix everything together until smooth and creamy.
Once the onions are done sautéing, allow them to cool slightly before adding them to the creamy mixture. Fold in the 1 cup of shredded cheddar cheese and 1 cup of shredded smoked gouda cheese into the bowl. Make sure everything is well-combined.
Preheat your oven to 350°F (175°C). Transfer the mixture into a baking dish and spread it out evenly. Bake in the preheated oven for about 25-30 minutes, or until the dip is bubbly and golden on top.
Once your Tennessee Onion Dip is out of the oven, let it cool for a few minutes. Garnish with chopped parsley for a fresh touch. Serve it warm with your favorite dippers.
