In a medium saucepan, melt the butter over low heat. Add the onions and cook until they are soft and wilted, about 30 minutes. Add the wine, vinegar and water and cook slowly until the liquid has evaporated, about 1 hour. The onions should be very tender; add another cup of water and continue to cook if necessary. Stir in the honey, salt and pepper and simmer for 2 to 3 minutes.

(This dish can be stored, covered and refrigerated, for up to one week.) Serve warm or room temperature.

Makes 1½ cups.