Turn your kitchen into the best steakhouse in town with this Steak with Bourbon Caramelized Onions. You won’t miss the restaurant, trust me!
When it comes to making steak, I am in the camp that it is just better at home. The price point is better. The steak is often cooked exactly how you want it without you having to send it back. And you can eat dinner in your PJs without judgement. It’s just an all around win in my opinion.

And this steak with Bourbon Caramelized Onions has steakhouse at home written all over it. Steak that is perfectly grilled. The onions are sweet with a hint of bourbon flavor. It really doesn’t get much better than this.
Let’s talk about everything you’re going to need to make it:
Steak with Bourbon Caramelized Onions Ingredients:

- STEAK: You can really pick any cut of steak that you want with this recipe, but you want it to be a good, flavorful, tender cut. For us, I chose a NY Strip as they happened to be reasonably priced at my grocery store. The trick is to pick whatever cut is your favorite and season it simply.
- SALT AND PEPPER: You’re not going to need a whole lot of seasonings for the steak. The beef flavor will shine and be complimented by the sweet onions.
- YELLOW ONIONS: Yellow onions will work best for this recipe because they offer a very balanced sweet and savory flavor that pairs perfectly with the steak.
- BUTTER/OLIVE OIL: To caramelize the onions. The combo of both will give the onions the perfect golden brown color.
- BOURBON: I’ll admit that I am not much of a bourbon drinker BUT I do love adding it to recipes. It has a woody, nutty, slightly sweet flavor that I think goes perfectly with the natural sweetness of caramelized onions.
Step by Step Photos and Instructions:
It’s not hard to get this Steak with Bourbon Caramelized Onions on the table. True caramelized onions do take a bit of time, at least 30 minutes so you’re going to want to prepare for that. Other than that, grill your steak to your desired doneness and bam! You’re ready!

Melt butter and olive oil together in a skillet. 
Add onions and cook for at least 30 minutes. Stirring occasionally. 
Add bourbon. 
Onions are done when they are brown and soft. 
Cook steak to desired doneness.
- STEP #1: Caramelize the onions. Melt butter and olive oil in a large skillet (I prefer cast iron). Once melted add the onions and cook them over low heat until they start to brown, stirring occasionally. This will take about 30 minutes.
- STEP #2: Once the onions have caramelized, add in the bourbon and cook an additional 3 minutes. Reduce heat and set aside.
- STEP #3: Season the steaks liberally with salt and pepper.
- STEP #4: Heat grill to medium-high heat and cook steaks until desired doneness. This will depend on the thickness of the steaks. For a 1 1/2 inch steak cook 5 – 6 minutes per side for medium rare. Allow the steak to rest for several minutes before serving.
- STEP #5: Spoon the onions over the steak and serve.

Storage and Leftovers:
This is best eaten the day that it is made. You can reheat the onions in a skillet if desired.
FAQ
All whiskeys are made from fermented grains but whiskey is made from at least 51% corn.
For medium rare you’re going to want to grill the steak 7 – 12 minutes total, turning halfway through. For medium 8 – 13 minutes.

Looking for side dishes to serve along side? Try these!
To get the full steakhouse experience, you’ve gotta serve it with a baked potato. These Air Fryer Hasselback Potatoes would be perfect!
Want a dip for your steak? Horseradish Cream Sauce is perfect!
For more Steak Recipes, check these out!
Another steakhouse favorite at home: Peppercorn Sirloin Steak with Mushroom Sauce
Turn your favorite steak meal into a soup with this Creamy Steak and Mushroom Soup.
Note: Originally published in 2010. Updated in 2023 with new photos, step by step photos and nutrition information.
Servings
Ingredients
- 2 tablespoons butter
- 1 tablespoon olive oil
- 1 large yellow onion (sliced)
- 3 tablespoons bourbon
- 2 NY strip steaks
- kosher salt and fresh cracked pepper
Instructions
Caramelize the onions. Melt butter and olive oil in a large skillet (I prefer cast iron). Once melted add the onions and cook them over low heat until they start to brown, stirring occasionally. This will take about 30 minutes.
Once the onions have caramelized, add in the bourbon and cook an additional 3 minutes. Reduce heat and set aside.
Season the steaks liberally with salt and pepper.
Heat grill to medium-high heat and cook steaks until desired doneness. This will depend on the thickness of the steaks. For a 1 1/2 inch steak cook 5 - 6 minutes per side for medium rare. Allow the steak to rest for several minutes before serving.
Transfer steaks to a serving platter, top with bourbon onions. Serve hot.

Mmmmmmmmm the delicious smell of onions. *Licking lips* My husband just passed his Sgt promotion board today. I think this will be a perfect celebration dinner. :) Yummy!!!!
I love the smell of caramelized onions too,thanks for sharing
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Oh wow, those bourbon onions look fantastic. And great picture… I love the steam rising up in the background!
-Kieran
Oh goodness, I think I just found my Mother’s Day dinner menu!
Its good to hear that I’m not the only one that loves the smell of cooking onions. Although Jenn may be on to something with the bacon. Better yet, bacon AND onions. mmmm :)
I love the smell of caramelized onions too…but it takes second to good old bacon! The steak looks fabulous!
Definitely carmelized onions cooking is a fantastic smell… makes the mouth water just thinking about it!
Yum! As always, your pictures and food look amazing! I agree with the delicious smell of onions. I believe a good steak doesn’t need a lot of seasonings to taste great, and this looks wonderful!