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michael.braasch
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Warm a large, heavy-bottomed pot over medium heat. Add bacon; cook and stir until crispy and rendered fat starts to foam, about 10 minutes. Pour bacon and rendered fat into a strainer placed over a bowl. When fat is drained and bacon is cool enough to handle, remove bacon to a cutting board and finely chop.
Return the pot to medium heat; drizzle 2 teaspoons reserved bacon fat and butter into the pot. Add onions and salt; cook until soft and translucent, 7 to 10 minutes.
Stir brown sugar, cider vinegar, black pepper, and cayenne into onion mixture; add bacon. Stir water into bacon mixture and cook until jam has a brick-brown color and thick consistency, 10 to 15 minutes.
Remove from heat and add balsamic vinegar, olive oil, and remaining ½ teaspoon thyme; stir until shiny and heated through.
Store in an airtight container.