Heat oil in a saucepan and cook the sliced onions on medium-low heat, stirring occasionally.
Once they soften and turn light golden brown, add in the ketchup, apple cider vinegar, brown sugar, ground cinnamon and chili powder.
Turn down the heat and cook until the mixture thickens and the onions soften further.
Take off heat, allow it to cool down and serve or store for later.
Notes
Use white onions for a classic New York-style hot dog onion sauce. Yellow onions work just as well, while sweet onions will give the sauce a slightly sweeter flavor.
Slice the onions thinly and evenly so they soften quickly and cook at the same rate. A mandoline slicer works well for this.
Cook the onions over medium-low heat until softened and lightly golden before adding the sauce ingredients. Avoid browning them too much, as they should remain tender rather than crispy.
Don't rush the initial cooking step, as the vinegar and ketchup can slow down the softening of the onions once added.
Stir the sauce occasionally as it simmers, scraping the bottom of the pan to prevent the ketchup and brown sugar from sticking or burning.
Adjust the brown sugar and apple cider vinegar to suit your taste if you prefer a sweeter or tangier sauce.
Reduce the chili powder for a milder sauce, or add a pinch of red pepper flakes or cayenne pepper for extra heat.
Add a splash of water if the sauce becomes too thick before the onions are completely tender.
Let the sauce cool slightly before serving, as it will thicken further as it sits.
Serve warm over hot dogs, grilled sausages, burgers, or vegetarian hot dogs. It also makes a delicious topping for loaded fries.
Store leftovers in an airtight container in the refrigerator for up to 4 days. Reheat gently in a saucepan, adding a little water if needed.
Freeze the cooled sauce in small, airtight containers for up to 2 months. Thaw overnight in the refrigerator before reheating.