Begin by bringing a large pot of salted water to a rolling boil. Gently add the potato gnocchi and cook for 2-3 minutes until they float. Drain and set aside.

In a large skillet, heat olive oil and unsalted butter over medium heat. Add the sliced onions and cook for 15-20 minutes, stirring occasionally.

Sprinkle cooked onions with sugar and continue to cook for another 5-10 minutes until caramelized.

Add the drained gnocchi to the skillet with the caramelized onions and toss them together carefully.

Sprinkle the grated Gruyère cheese on top and allow to melt slightly before stirring everything together.

Season with salt and black pepper to taste, allowing to cook on low heat for 2-3 minutes.

Serve the dish on plates and garnish with fresh thyme if desired.