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Trim any excess fat from the lamb. Season the lamb with kosher salt and ground black pepper in a large bowl. Toss the lamb with oil, whole grain mustard, garlic, white vinegar, cayenne pepper, and sliced onions. Cover and allow the meat to marinate for 1 hour or overnight in the refrigerator.
Preheat the grill to medium-high. In a large skillet over medium heat, add the oil and sauté the onions with whole grain mustard and white vinegar making sure not to overly brown the onions (about 7 - 8 minutes). Stir frequently. To thin out the sauce add ¼ cup of water. Season with cayenne pepper, kosher salt, and ground black pepper.
Taste and add more kosher salt and ground black pepper if needed. If the sauce is too acidic and tangy add ½ tsp of granulated sugar. Remove the sauce from the heat and keep warm.
Oil the grill with non-stick cooking spray or vegetable oil. Grill the lamb and onions until desired doneness and charred on the outside (about 6 - 8 minutes for medium doneness). Try using aluminum foil over the grill grates to prevent the onions from burning too fast.
Remove the lamb and onions from the grill. Allow the lamb to rest for about 5 minutes. Slice the lamb into small bite-size pieces.
Serve the grilled lamb and onions with the warm mustard sauce. Enjoy!