Melt butter in a large Dutch oven or heavy-bottomed pot over medium heat. Add sliced onions and cook, stirring occasionally, for 25-30 minutes until deeply caramelized and golden brown. Be patient—this is where the magic happens!
Add minced garlic and cook for 1 minute until fragrant.
Sprinkle flour over the onions and stir well to coat. Cook for 2-3 minutes to remove the raw flour taste.
Gradually whisk in the beef broth, making sure to break up any lumps.
Add paprika, cayenne pepper, garlic powder, black pepper, and onion powder. Stir well to combine.
Bring to a gentle simmer and cook for 10 minutes, allowing the flavors to meld together.
Stir in heavy cream and continue to simmer for another 5 minutes. Season with salt to taste.
Serve hot, topped with crispy fried onions and fresh chives for that authentic Outback experience!