Fill a large stock pot with water and heat to a rolling boil.
Add unpeeled onions and blanch for about 3 minutes.
Drain and allow onions to cool.
Re-fill stock pot with water and again heat to boiling temperature.
Peel each onion by cutting the root end, not the tail end) and then squeezing the onion from its skin.
Add the onions to the boiling water and cook until fork tender but not mushy.
Meanwhile, stir together all remaining recipe ingredients in a medium saucepan and cook over medium heat, stirring constantly, until boiling. Continue to cook and stir about one more minute, until sauce has thickened.
Combine the fork tender cooked onions with the sauce and sprinkle with paprika.