1. Preheat a small nonstick skillet over medium heat. Add oil, onions, and ¼ teaspoon of the salt. Cook, stirring occasionally, until onions are soft and well browned, about 12 minutes. Adjust heat as needed to prevent burning.
2. Transfer onions to a blender. Add water and remaining ¾ teaspoon of the salt. Blend until smooth.
3. Transfer onion mixture to a fine mesh sieve. Strain liquid from onion mixture into same skillet until onion mixture is nearly dry.* Add sugar, vinegar, cornstarch, onion powder, and garlic powder to skillet. Whisk until no lumps remain.
4. Heat skillet over medium-high heat. Bring to boiling, reduce to a simmer. Cook, whisking constantly 2 to 3 minutes. 
5. Remove skillet from heat, let cool at least 30 minutes. Transfer mixture to a container. Refrigerate until ready to use.

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