Thaw onions per package directions. Melt butter in a large skillet over medium heat. Add the onions. Cook uncovered for 5-8 minutes or just until beginning to brown.
To the onions, add a splash of sherry or white wine to deglaze the pan, scrape any brown bits from the bottom if the pan.
Add flour, stir gently to coat. Add chicken stock or chicken broth, salt, granulated garlic, white pepper or black pepper, nutmeg and bay leaves.
Simmer for 3 minutes then add heavy cream. Simmer over medium heat uncovered for 5-10 minutes or just until reduced. Remove bay leaves, mix in fresh thyme and serve.
Make Creamed Onions Using Fresh Pearl Onions: You’ll need to blanch and remove the papery skin and outer layers along with the stem end. Next, boil them in chicken stock for 6-8 minutes or just until they're tender and drain them well prior to beginning the recipe. Fresh onions may not take as long in step #1 to begin to caramelize.
Notes
Thawing the Onions - If the brand packaging isn't clear about how to thaw the onions you can place them into a colander and run under hot water for a few minutes. Drain them well and pat dry with a paper towel then proceed with the recipe. If they aren't completely thawed step #1 may take a little more time. Adjust the cooking time as needed, it will still work fine.
How to Peel Fresh Onions - You can blanch fresh onions in boiling water, then immediately submerge them in a bowl of ice water. Remove the stems prior to boiling, then remove the skins with a sharp knife after blanching.
Topping Variations - You may choose to top these onions with a crispy panko breadcrumb topping. Prepare the onions on the stovetop then pour into a baking dish, if the skillet used isn't oven safe. In a small bowl, toss 1/2 cup of panko breadcrumbs with two tablespoons of grated Parmesan cheese and 2 tablespoons of melted butter, then sprinkle on top. Place the dish under the broiler and bake in the oven for 3-5 minutes to toast the crumbs.
Fresh Herbs - You can use fresh rosemary or fresh parsley in place of thyme.
Cheese - You could add 1/4 cup of finely grated Asiago cheese or Parmigiano-Reggiano cheese to the cream sauce.
Spice - Add a pinch of crushed red pepper flakes for a little extra heat.