The best way to caramelize onions is by using butter, though margarine and oil also work. Keep your stove on a low heat, and don’t try to rush the process.u003cbr/u003eu003cbr/u003eStir every few minutes, to begin with, so that the onions don’t stick to the bottom. Then, once all of the moisture has evaporated, stir constantly to make sure they don’t burn.