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Sprinkle steaks with dried onion, 1/4 teaspoon salt and pepper. Heat 1 tablespoon oil in a large skillet over medium-high heat. Add the steaks and reduce the heat to medium. Cook, turning once, until desired doneness, 3 to 6 minutes per side for medium-rare. Transfer the steaks to a plate and tent with foil.
Position a rack in upper third of oven. Preheat broiler.
Add the remaining 1 tablespoon oil to the pan. Add onions and sherry, cover and cook over medium heat, stirring occasionally, until the onions are tender and golden brown and the liquid has evaporated, 10 to 12 minutes. Sprinkle flour over the onions and stir to coat. Add broth, thyme and the remaining 1/4 teaspoon salt; cook until bubbling and thickened, about 1 minute more.
Remove from the heat and return the steaks and any accumulated juice to the pan. Pile up some of the onions on top of the steaks. Top each steak with a slice of baguette and some cheese. Transfer the pan to the oven and broil until the cheese is melted and bubbling, about 2 minutes. Serve the steaks with the onions and sauce.