Homemade bacon jam is delicious served with cheese and dried fruit, tucked into a grilled cheese sandwich, smeared on burgers, really on just about anything! This recipe can be easily doubled or tripled to make bigger batches for gift giving.
Cook the bacon in a large heavy pot or skillet over medium heat, stirring occasionally, until crisp and golden brown, 15 to 20 minutes. Use a slotted spoon to scoop out the bacon, leaving as much fat in the pot as possible, and transfer to a bowl.
Add the onions to the pot, cover, and cook over medium-low heat, stirring often, until onions are deep golden brown, about 40 minutes. Stir in the thyme and cook for 5 more minutes.
Add the balsamic vinegar and stir well, scraping up all the browned bits on the bottom of the pot. Add the brown sugar, salt and pepper and let simmer, uncovered, until thick and glossy, about 5 minutes. Remove from the heat and let cool.
Combine the onions and bacon in a blender or food processor and pulse until combined and chunky (not smooth). Transfer to clean jars, seal and store in the refrigerator.
The bacon jam will keep up to 1 month in the refrigerator.