Place 1 pint of pearl onions in a heat-proof container. Pour over boiling water to cover. Let sit for 5 minutes. Drain and when cool enough to handle, pinch root ends to remove skins. Trim off root end and make a small cross with the tip of a sharp knife. In a skillet large enough to hold the onions in one flat layer, place the onions and add water to barely cover. Add 1 tbsp of butter, 1/2 teaspoon salt, and 1 teaspoon sugar. Bring to a rapid boil. As the water boils off, the onions will cook. The butter and sugar will remain leaving a caramelizing glaze that will coat the onions. Once the water has boiled away, watch carefully and toss or stir as onions caramelize. Remove to drain on paper towels.
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