Caramelized Onion Dip with Icelandic Provisions Skyr

What is better than caramelized onion dip? Pretty much nothing If you like words like creamy, spicy, crunchy, and caramelized – this is going to be an absolute must-do. The trick begins with plain  Icelandic Provisions Skyr. And most of you know how much I love it.

Did you know Skyr is a cultured diary product? Think creamy, not sour. It has been a part of the Icelanders for over a thousand years. For me, Skyr is luscious beginning to many of my Magic Elixirs.

I am so proud to partner with Icelandic Provisions since they are committed to making a clean, healthful product that is non-GMO. It takes nearly 4 cups of milk to make 1 cup of Skyr which makes it smooth and creamy and perfect for dips!  And I love that it has a lot less sugar and way more protein than yogurt.

Let’s get started making the dip. If you share on Instagram, be sure to tag me @nocrumbsleft and use my hashtag #nocrumbsleft.


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Caramelized Onion Dip with Icelandic Provisions Skyr

  • Author: nocrumbsleft
  • Prep Time: 10 min
  • Cook Time: 20 min
  • Total Time: 30 min
  • Yield: 4-5 servings


  • 4 cups sliced onions (half moons) 1/8 inch thick
  • 2 Tbsp olive oil
  • 2 Tbsp unsalted butter
  • 1/8 tsp cayenne
  • 2 Tbsp thinly sliced chives
  • 1 1/4 tsp salt, divided
  • 1/2 tsp pepper
  • 1 small, 5 oz container Skyr
  • 1 Tbsp apple cider vinegar


Peel and cut onions in half. Then slice as thinly as possible (about 1/8?).

In a large saute pan, over medium heat, melt butter and olive oil.  Add onions, 1 tsp salt, 1/2 tsp pepper.  Cook until golden brown in color, stirring regularly, about 17-20 minutes. If the onions start to cook too quickly or start to burn, turn the heat down to low.


Transfer the cooked onions to cutting board and roughly chop into smaller pieces.

In a medium bowl, stir together Skyr, apple cider vinegar, 1/4 tsp salt, cayenne and chives.  Add the onions and stir until well combined.

Serve with cucumbers, cherry tomatoes, chips, gluten free crackers or your favorite thing to dip with.


A dairy-free follower shared her substitutions: I used ghee instead of butter, Kite Hill sour cream (almond-based), and added a few spoons of SoDelicious unsweetened coconut yogurt for that little bit of tang.

11 thoughts on “Caramelized Onion Dip with Icelandic Provisions Skyr

  1. This looks delicious. Can’t wait to make it!

  2. This looks amazing. I made my shopping list for tomorrow. Great for Super Bowl watching. Thanks Teri

  3. You had me at Caramelized! Major onion lovers in this house. ???
    Thank you, Teri!

    1. Oops, not ???, but !!’

      1. its delicious!

  4. Trying this tomorrow…yum!

  5. Jenny Rachel Weiner February 7, 2021 — 11:58 am

    Hi Teri! Big fan here! Making this dip for super bowl tonight. Do I need to cool the onions before I add them to the yogurt base? Thank you!

    1. just cool a bit but they will be cool because u will have chopped them ..

  6. I am lactose intolerant. I made this today and subbed ghee for butter, Kite Hill sour cream (almond based), and added a few spoons of SoDelicious unsweetened coconut yogurt for that little bit of tang. Oh. My. Word. It is SO GOOD! The almond sour cream of course isn’t quite as creamy as regular, but if you’re dairy free you don’t care. Maybe a little mayo would help if you need that creaminess. But oh man. Potato chips and dip are my kryptonite. This recipe is killer good!

    1. You are fabulous… And you did all the work for us. Thank you so much I’m going to add this to the notes of the recipe and I certainly appreciate you. Do you receive Friday favorites?

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