In a large saucepan or large dutch oven, melt butter over medium heat. Lightly sauté onion.
Add red cabbage. Continue to sauté for several minutes, stirring.
When some of the sautéed red cabbage has browned, add about 1 cup water.
Add salt, pepper, cloves, and sugar. Stir.
Bring to a simmer and cover. Simmer for about 30 - 60 minutes or until cabbage is tender. Add a little water, as necessary, and stir occasionally during simmering.
Once cabbage is tender, add vinegar. This will give the cabbage that beautiful red colour.
Taste, and season with more salt, cloves, pepper, sugar, and/or extra vinegar as needed.
Mix cornstarch with cold water and slowly stir in just enough to thicken the red cabbage liquid.
Serve and enjoy!