Dairy-Free Caramelized Onion Dip

Name: Dairy-Free Caramelized Onion Dip
Prep time: 15 min
Cook time: 40 min
Total time: 55 min
Cuisine: American
Ingredients: 1 cup raw cashews; 1-2 cups hot water (enough to cover cashews); 3 medium-sized yellow onions, roughly chopped; 2 tablespoons dairy-free butter; 2 teaspoons coconut sugar; 1 teaspoon kosher salt; 1/4 cup unsweetened almond milk; 1 cup dairy-free sour cream; 3 tablespoons fresh lemon juice (about 1 large lemon); 1 teaspoon Worcestershire sauce; 1/4 teaspoon garlic powder

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This Dairy-Free Caramelized Onion Dip is thick, creamy and packed with sweet caramelized onions! It’s made without cream cheese and uses blended cashews and dairy-free sour cream to achieve that rich and creamy texture. Serve it with chips, pretzels or veggies for a crowd pleasing party appetizer or game day snack!

You probably already know how much we enjoy cashew dips and spreads in our house. This cashew mayo is a favourite of mine, and we love the versatility of this red pepper cashew dip (it’s great as a dip or a sauce). So, naturally, when it came to making a dairy-free caramelized onion dip, cashews just had to be involved.

Onion dip in a bowl with caramelized onions on top and potato chips surrounding the bowl.

Soaked and blended cashews add a thick and creamy texture to this onion dip (so you don’t even miss the cream cheese) and the mild sweetness of cashews pairs nicely with the sweet caramelized onions.

If you have a nut allergy or just want to skip the step of pureeing the cashews, no worries. I have recipe substitutions included in the post below!

Details on the ingredients

Below is an overview of the ingredients and helpful tips for substitutions. See the recipe card below for the full list of ingredients and quantities used.

Ingredients to make dairy-free caramelized onion dip arranged in individual bowls with three onions in the middle.

Onions – You’ll need 3 medium-sized onions, roughly chopped. I used yellow onions but white onions will work too.

Butter – To keep this recipe dairy-free, I used plant-based butter. Just two tablespoons is needed to help the onions caramelize. You can also use two tablespoons of oil if you prefer.

Cashews – For the creamy base, and in the absence of cream cheese, the recipe calls for 1 cup of cashews soaked in hot water. I normally use raw and unsalted cashews (whole or halved).

Sour cream – Dairy-free sour creams can vary in texture. I tried this recipe with both Earth’s Own and Tofutti sour cream and both worked well. (Tofutti is a little thicker and creamier, in my opinion, so it was our preferred option).

Almond milk – Or any type of non-dairy milk will work. Just make sure it is unsweetened and unflavoured.

Coconut sugar – Two teaspoons are added to the onions to enhance the caramelization. You can substitute brown sugar if you don’t have coconut sugar.

Salt – Added to the onions at the same time as the sugar to enhance the flavour.

Garlic powder – Just a little is stirred into the dip. You can substitute with onion powder for an extra punch of onion flavour. I don’t recommend using fresh minced garlic as it won’t mix evenly throughout the dip.

Worcestershire sauce – You don’t need a lot (or you can add more if you prefer) but just a little adds a sweet, sour and savoury flavour to the onion dip.

Lemon juice – The sour flavour of freshly squeezed lemon juice helps balance the sweet and savoury flavours in the dip.

How to make caramelized onion dip dairy-free

Place the cashews in a large glass dish and add the hot water, making sure the cashews are fully covered. Let soak for at least 30 minutes.

Meanwhile, add the butter to a large skillet and melt over medium-high heat. Add the chopped onions, sugar and salt. Stir together and let the onions cook for a few minutes.

Once the onions start to soften, reduce the heat to low and let cook for 30-40 minutes, stirring frequently until the onions are caramelized. Set aside to cool a bit.

Meanwhile, drain the cashews and add them to a high-powered blender or food processor along with the almond milk.

Blend on high until smooth. You may need to add more milk or some water to blend into a smooth texture. (This depends on the power of your blender or food processor).

In a large bowl, add the blended cashew mixture, sour cream, lemon juice, Worcestershire sauce and garlic powder and stir until combined. Once smooth, stir in the caramelized onions.

Onion dip stirred together in a large bowl with a spatula.

Let sit in the fridge for a few hours to let the flavours meld and then serve with chips, pretzels or veggies.

Tips for perfectly caramelized onions

Don’t cover the onions as they cook. You want them to brown not steam.
Start the heat at medium-high to get the onions cooking, but turn down to low for most of the cooking so they don’t burn.
Stir the onions often so they don’t burn, but don’t stir them constantly, because they won’t brown enough.
If the onions start to dry out or really start stick to the pan, add a splash of water.
Don’t rush the process. Patience is key. It will take about 30-40 minutes for the onions to fully caramelize.

Recipe variations

For a nut-free version, omit the cashews and almond milk, and use 4-6 ounces of softened dairy-free cream cheese.
For a dairy version of this dip, just use regular cream cheese (in place of the cashew mixture) as well as regular sour cream and butter.
For a tangier dip, add 1/4 cup of mayonnaise. (Most mayos are dairy-free but be sure to check the label).

Close up view of onion dip in a bowl with chips on the side.

Dairy-free onion dip FAQs

What onions are best to make caramelized onion dip?

You can use almost any kind of onion. I used yellow onion, but white onion works too. For a sweeter caramelized onion, try using red onion. Shallots will also work. You can even use a mix of onions if you prefer.

Is there a quick way to caramelize onions?

Unfortunately, the best way to caramelize onions on the stovetop is low and slow. If you try to rush it by turning up the heat, the onions will burn.

Can you make this dip in advance?

Absolutely! This onion dip tastes best after the flavours have had a chance to sit together in the fridge for a few hours, so feel free to make this one a day or two in advance. You can even caramelize the onions the day before and assemble the dip a few hours before serving.

How long will this onion dip last?

The dip should last for up to 5 days if stored in an airtight container in the fridge.

How do you serve this dip?

We love this dip with plain potato chips, especially ripple or ruffle chips that are sturdy enough to scoop up a lot of dip. For a healthier option, you can use pretzels or homemade tortilla chips or pita chips. You can also serve it with carrot or celery sticks. And, like most of my cashew based dips, it’s perfect as a sandwich or burger spread too.

Overhead view of onion dip in a bowl with chips and pretzels on the side.

Additional recipe tips

Don’t skip the step of soaking the cashews in hot water. This softens them up and helps them blend into a smooth and creamy texture.
For the smoothest cashew mixture, it’s best to use a high-powered blender or food processor.
If the mixture is too thick, just add extra liquid to help the cashews blend.
Feel free to add more lemon juice, Worcestershire sauce, garlic powder, salt and/or pepper to suit your tastes.
When first combined, the dip may not look thick enough. Don’t worry, it will thicken in the fridge. If you prefer it thinner, just stir in a little more almond milk or water.

More cashew dips to try

If you make this recipe, I’d love to hear what you think in the comments below!

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