Finely slice the onion in half-moon shapes
In a medium stainless steel saucepan, heat about 1 tbsp of butter over medium-low heat.
Add the onions and cook, without stirring for about 10 minutes or until you start to see some dark caramelization on the pan.
Stir the onions, scraping off the color from the sides and bottom of the pan.
Add 1/4 tsp salt to the onions and stir. Let the onions sit for five minutes, until you can see more caramelization to scrape off the pan.
Keep repeating the process until the onions are rick, and dark in color. Do not increase the heat or allow the onions to burn.
Once the onions have reached the desired color and you are unable to scrape any more color of the pan, deglaze with 2 tbsp of beer. Quickly stir using the liquid to scrape off all the caramelization possible.
Cover with a lid to keep warm and set aside.
Place the brats in a seperate large saucepan and cover with beer. If it doesn't cover, just top it off with water.
Simmer over medium heat for about 8 minutes or until cooked.
When they are done boiling move them to the smoker or grill and cook until the desired color is achieved.
Shred the cheddar cheese
Heat a medium saucepan to medium heat
Add one can of beer and the cream cheese to the pan, stirring until the cream cheese has melted completely.
Stir in the smoked paprika, salt, and garlic powder.
Slowly add the cheddar cheese while stirring to melt completely.
To serve place a brat in a hot dog bun with mustard and top with the caramelized onions and drizzled with beer cheese.
Serve and enjoy.