Onions are fully caramelized when they are a deep, rich brown color, significantly reduced in volume, and have a sweet, almost jam-like flavor. They should be very soft and tender.
Caramelizing onions is a slow process that transforms their natural sugars into complex, sweet flavors. Here's how to tell when they're done:
Color: Raw onions are typically white or yellow. As they caramelize, they will gradually turn golden, then amber, and finally a deep, rich brown. The deeper the color, the more caramelized they are.
Volume: Onions contain a lot of water. As they cook, this water evaporates, causing them to shrink significantly. Fully caramelized onions will be much smaller in volume than when you started.
Texture: Raw onions are firm and crisp. Caramelized onions should be very soft and tender, almost melting in your mouth. They should not be crunchy or have any bite.
Flavor: The most important indicator is the taste. Raw onions have a sharp, pungent flavor. Caramelized onions should be intensely sweet and savory, with a complex, almost jam-like flavor. Taste them to ensure they've reached the desired level of sweetness.
Appearance: They should have a glossy, almost translucent appearance due to the breakdown of sugars.
Don't rush the process! Caramelizing onions properly takes time, usually 30-45 minutes over low heat. Rushing it by using high heat will burn the onions instead of caramelizing them, resulting in a bitter flavor.