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In large pot or dutch oven heat oil.
Add sliced onions and sauté until soft and clear; do not brown.
Add caraway seed and sauté for 30 seconds to release flavour.
Add cabbage, apples and bay leaf.
Stir and cook until cabbage is slightly wilted, about 3 minutes.
Add vinegars, water and sugar and bring to boil. Add more water if needed (depending on how big your cabbage is).
Reduce heat and simmer until cabbage is tender, about 30 to 40 minutes.
Add salt and pepper to taste. Add more sugar if too acidic.