Start the Onions: In a large Dutch oven over medium heat, melt 4 tablespoons butter. Add sliced onions, salt, and sugar. Stir, cover, and cook for 20 minutes, stirring occasionally.
Develop Deep Color: Uncover, lower heat slightly, and cook 40–45 minutes, stirring often. Add 1/4 cup water when onions stick, scraping with a wooden spoon. Repeat at least twice.
Finish the Onions: Stir in thyme, add vegetable broth, and scrape up browned bits. Remove from heat and cool slightly.
Prepare the Breadcrumbs: In a skillet over low heat, melt butter. Pulse bread into coarse crumbs and toast 3–5 minutes until golden. Season with salt and pepper.
Get Ready for Baking: Preheat oven to 400°F (200°C) and butter a 9x13 inch baking dish.
Cook the Pasta: Boil pasta in salted water until very al dente. Drain and cool completely.
Make the Cheese Sauce: In a saucepan, warm evaporated milk and Dijon mustard over low heat. Remove from heat, stir in half the Gruyère, all processed cheese, and hot sauce until smooth.
Assemble the Dish: Combine pasta and cheese sauce in a large bowl. Season if needed and transfer to baking dish.
Add the Toppings: Spread caramelized onions over pasta, top with breadcrumbs, and sprinkle remaining Gruyère.
Bake and Serve: Bake uncovered for 15–20 minutes until golden and bubbling. Rest 5 minutes before serving.