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Heat butter and oil in a large skillet over medium heat until butter is melted. Add onions and sugar. Cook, covered, for 13 to 15 minutes or until onions are tender, stirring occasionally. Uncover; cook and stir over medium-high heat for 3 to 5 minutes more or until golden.
Meanwhile, in a blender or food processor, puree tomatoes in batches until smooth. Transfer tomato puree to a 4- to 6-quart stainless-steel, enamel or nonstick heavy pot. Bring to boiling; reduce heat. Simmer, uncovered, for 30 to 40 minutes or until reduced by half.
Add caramelized onions, garlic, wine, vinegar, tomato paste, salt, black pepper and crushed red pepper. Bring to boiling; reduce heat. Simmer, uncovered, about 5 minutes or until desired consistency, stirring frequently.
Ladle hot sauce into hot sterilized half-pint canning jars, leaving a 1/2-inch headspace. Wipe jar rims; adjust lids and screw bands.
Process filled jars in a boiling-water canner for 15 minutes (start timing when water returns to boiling). Remove jars from canner; cool on wire racks.