Melt butter in a skillet over medium heat. Add thinly sliced onions, sprinkle with salt and sugar, and cook for 20 minutes, stirring occasionally. Add water as needed. Continue cooking for another 10-15 minutes until caramelized.

Let onions cool, then chop finely. Blend cottage cheese until smooth, then add Greek yogurt, mayonnaise, balsamic vinegar, Worcestershire sauce, and garlic powder. Blend until creamy.

Fold in chopped caramelized onions into the cottage cheese mixture, ensuring even distribution.

Transfer to a serving bowl, cover, and refrigerate for at least 30 minutes to enhance flavors.