Grandmother's Onions: Creamed Onions for Thanksgiving

Creamed onions for Thanksgiving, the Shipley family way: pearl onions in cheese sauce, covered in peanuts. Make it a day ahead.

 · 7 min read

Every family has one dish that is not negotiable. At the Shipley farm, it is small, white and covered in peanuts.

Grandmother's onions, creamed onions for Thanksgiving. 2 pounds pearl onions, 2 cups whole milk, 1 1/2 cups sharp cheddar, and 3/4 cup peanuts on top. Bake at 350 degrees Fahrenheit for 20 to 25 minutes, until bubbling. Make it the day before.

Gray Shipley, who runs the farm, on the Thanksgiving table his grandmother used to set:

“One of my favorite, probably my favorite dish, we just call it Grandmother's onions. It's a baby pearl onion and a cheese sauce, as simple as it can be. She taught me to make it, that's one thing that I do try to make most of our Thanksgivings, and you cover it with peanuts. It doesn't sound like something that would be great, but it was amazing, and it just pairs wonderfully with everything else on the plate.”

Gray Shipley
Hear Gray say it, 25 seconds.
Word for word, as recorded

One of my favorite probably my favorite dish we just call it grandmother's onions it's a baby pearl onion and a cheese sauce as simple as it can be she taught me to make it that's one thing that I do try to make most of our Thanksgivings and you cover it with peanuts it doesn't sound like something that would be great but it was amazing and it just pairs wonderfully with everything else on the plate.

It does not sound like much. That is rather the point. Old-fashioned creamed onions were a holiday side long before anybody wrote a casserole cookbook: small onions, a sauce made from what was already in the kitchen, and something crunchy on top. Gray's grandmother made hers with cheese in the sauce and peanuts on top, and he says it pairs with everything else on the plate.

Asked which dish would cause a riot if it went missing, he said:

“Well, beef, there would really be an issue if anything here went vegetarian. But I think Grandmother's onions is, for me, it's the stand out, the go-to, that it's really hard to think of Thanksgiving without it. Green bean casserole is a pretty good standard as well, but I would say Grandmother's onions.”

Gray Shipley
Hear Gray say it, 37 seconds.
Word for word, as recorded

Well beef there would really be an issue if anything here went vegetarian but I think grandmother's onions is for me it's the stand out the go to that it's really hard to think of thanksgiving without it green bean casserole is a pretty good standard as well but I would say grandmother's onions.

Creamed onions in five steps, serves 8 in about 45 minutes. Peel fresh pearl onions the easy way: boil 2 minutes, then squeeze. Cook until just tender, 8 to 10 minutes if fresh. Make the cheese sauce with butter, flour, milk and cheddar. Fold the onions in and spread them in a 2-quart baking dish. Scatter peanuts on top and bake at 350 degrees Fahrenheit for 20 to 25 minutes. Making it a day ahead, add the peanuts last.

How to make creamed onions the old-fashioned way

Gray's grandmother never needed a written recipe, and the family's exact proportions are his to share. What follows is a straightforward way to make the dish the way he describes it: baby pearl onions, a cheese sauce and a peanut topping.

Serves 8 as a side. Time about 45 minutes.

Grandmother's Onions Serves 8 as a side
2 pounds
pearl onions, fresh, or frozen and thawed
1
boil 2 minutes, cool,
trim and squeeze
2
simmer 8 to 10 min,
3 or 4 if frozen;
drain well
6
fold together, spread
in a 2-quart dish
7
peanuts on top;
bake at 350 degrees F,
20 to 25 min
3 tablespoons
butter
3
melt the butter,
whisk in the flour,
cook a minute
4
whisk in warm milk;
bubble 4 or 5 min
5
off the heat: cheese,
salt and pepper
3 tablespoons
all-purpose flour
2 cups
whole milk, warmed
1 1/2 cups (6 ounces)
sharp cheddar, grated
1/2 teaspoon
salt, and a pinch of white pepper
3/4 cup
salted roasted peanuts, roughly chopped

Numbers show the order to work in. Each cell spans exactly the ingredients it uses.

Watch it in 75 seconds, with Gray in his own words. Captions are in the video.
  • 2 pounds pearl onions, fresh, or frozen and thawed
  • 3 tablespoons butter
  • 3 tablespoons all-purpose flour
  • 2 cups whole milk, warmed
  • 1 1/2 cups (6 ounces) sharp cheddar, grated
  • 1/2 teaspoon salt, and a pinch of white pepper
  • 3/4 cup salted roasted peanuts, roughly chopped
  1. Peel fresh onions the easy way. Drop them into boiling water for 2 minutes, then into cold water. Trim the root end and squeeze: the onion pops out of its skin. Frozen pearl onions come peeled, which is what most busy cooks use.
  2. Cook the onions. Simmer them in salted water until a knife slides in with a little resistance, 8 to 10 minutes for fresh, 3 or 4 for frozen. Drain well.
  3. Make the cheese sauce. Melt the butter in a saucepan, whisk in the flour and cook for a minute without letting it brown. Whisk in the warm milk a little at a time and let it bubble gently for 4 or 5 minutes until it coats a spoon. Take it off the heat and stir in the cheese, salt and pepper.
  4. Assemble. Fold the onions into the sauce and spread them in a buttered 2-quart baking dish.
  5. Top and bake. Scatter the peanuts over the top and bake at 350°F for 20 to 25 minutes, until the edges are bubbling.

A creamed onion casserole you can make the day before

Assemble the dish through step 4, cool it, cover it and refrigerate it overnight. Add the peanuts just before it goes in the oven, so they stay crisp, and give it 10 extra minutes because it starts cold. That frees the oven on Thanksgiving morning for the roast.

Making things ahead was how his grandmother fed a full house for days at a time. Gray remembers:

“When Grandmother ran Thanksgiving it ran like clockwork, and I didn't appreciate until I got older how good she was and how much work she put into it.”

Gray Shipley
Hear Gray say it, 17 seconds.
Word for word, as recorded

When grandmother ran thanksgiving it ran like clockwork and i didn't appreciate until i got older how good she was and how much work she put into it.

What to serve with cheesy pearl onions

Rich, sharp and crunchy, they want something big and plain beside them. A dry-aged standing rib roast is the classic partner, and how to cook a standing rib roast covers sizes and timing. If you would rather spend the day outside than in the kitchen, a dry-aged chuck roast on the smoker is the roast Gray himself would pick.

On his grandmother's Thanksgiving table the onions sat beside green bean casserole, cranberry sauce, apple butter and her sausage balls. If you want one more of her dishes on your table, here is a sausage balls recipe.

The Sunday Roast Box from Shipley Farms
For the center of the table
The Sunday Roast Box

A roast feeds a table and asks very little of you once it is cooking.

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Dry-aged boneless chuck roast, raw, showing the coarse grain and marbling of a working muscle
The roast Gray would pick
Dry-Aged Chuck Roast, Boneless

Dry-aged, boneless and well marbled. Low and slow, and the onions have a worthy partner.

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About this guide

Written at Shipley Farms in Vilas, North Carolina: a family cattle farm raising and dry-aging beef in the Appalachian Mountains, now in its fifth generation. No shortcuts since 1872.

Every quote on this page is Gray Shipley talking, the man who runs this farm. He recorded these answers himself, at the farm, in the autumn of 2026. The play button under each quote is that recording, exactly as he said it, and the words under it are a word-for-word transcript. In the written quotes, hesitations are trimmed so they read on the page. Nothing else is added or reworded, except where Gray revised his own words in review.

Reviewed 8 November 2026.


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