Heat a 10 inch cast iron skillet over medium-high heat. Add the olive oil.
Season the chicken thighs liberally with salt and pepper, place skin side down and cook for 4-5 minutes or until the skin is well browned. Turn and cook for 3-5 minutes. Remove the chicken and set aside.
Add the onions to the pan and stir well. Add the butter, thyme, black pepper, and kosher salt. Reduce the heat to medium-low, stirring occasionally to caramelize the onions, cooking for about 15-20 minutes.
In the meantime preheat the oven to 400 degrees F.
Once the onions are softened and a deep brown color add the sherry and cook down until the liquid is syrupy and the pan is mostly dry.
Add the water, place the chicken back into the pan, trying not to submerge the chicken skin. Bring to a boil and then place in the oven and bake the chicken until cooked through ( 180 degrees F internal temp), about 45 minutes.
Remove the pan from the oven. Serve the onions topped with the chicken.
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