Baslamic Pearl Onions

20 ounces frozen pearl onions (2 bags)     2 tablespoons olive oil   1 cup balsamic vinegar  1 cup water

Thaw onions.

 

In a large heavy skillet heat oil over moderately high heat until hot but not smoking and sauté onions until lightly browned, about 5 minutes. Add vinegar and water and simmer, stirring occasionally, until onions are tender, about 15 minutes. Transfer onions with a slotted spoon to a platter, reserving liquid. Glazed onions may be prepared up to this point 2 days ahead and onions and reserved liquid, chilled separately, covered. Reheat onions in reserved liquid, adding a little water if necessary, and transfer with slotted spoon to platter. Simmer reserved liquid until thickened and syrupy and reduced to about 1/2 cup.  Season with salt and pepper.