Clean and peel the Vidalia sweet onions. Slice them into rounds approximately ¼ inch thick.
Separate each onion ring into thirds so they cook evenly. Don't leave them nested. (You don't need to completely separate, it's okay if 2 or 3 are attached.)
Spread the onions evenly in the baking dish.
In a small bowl, add the salt, garlic powder, oregano, dry mustard, and cayenne pepper. Whisk together.
Sprinkle the onions with the mixed seasonings.
Cut the butter into eight pats. Add these butter pats evenly across the seasoned onion rings.
Sprinkle both cheeses evenly over the onion rings. Finish with a final topping of shredded Parmesan cheese.
Bake for 35-40 minutes until the cheese is browned and bubbling.
Serve right out of the oven, nice and hot, but still good if you serve warm.
Makes a great potluck dish, or serve on burgers, hot dogs, with meat, on a grilled cheese sandwich, or on pizza
Notes
Sandy’s tips:
Onions: Vidalia sweet onions are ideal for Tennessee onions, but other sweet onions will work too. Try it with Walla Walla, Maui, or Texas sweet onions. Spanish onions have a bit more bite to them but are also a great pick.
Crunchy topping: Sprinkle breadcrumbs (regular or gluten-free),crushed Ritz crackers, or lightly salted potato chips over the top of the cheese for extra golden-brown hue and for a crunchy factor.
How to store the leftovers: To store Tennessee Onions, let the dish cool completely and then cover the 9x13 pan tightly with foil or transfer the onions to an airtight container. Store them in the refrigerator for up to 3–4 days.
How to reheat this dish: Simply reheat in the oven at 325–350°F until warmed through, or microwave individual portions. The cheesy onion layers reheat well and stay flavorful, making leftovers just as delicious the next day.