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Creamed Peas and Onions

['2 cups whole milk', '3 whole cloves', '1 bay leaf', '1 pound pearl onions (about 2 cups), peeled, trimmed, or 1 pound frozen pearl onions, thawed', '3 tablespoons unsalted butter, divided', '1 1/2 teaspoons kosher salt, divided', '1 teaspoon sugar', '2 tablespoons all-purpose flour', '1/2 teaspoon freshly ground black pepper', '1/4 teaspoon freshly grated nutmeg', '2 1-pound bags frozen peas, thawed', '1/4 cup crème fraîche', 'whole-milk', 'Greek yogurt', 'or sour cream']

Bring milk, cloves, and bay leaf to a boil in a small saucepan; reduce heat to low and simmer for 15 minutes to let flavors meld. Strain into a medium bowl; discard solids. Cover milk and keep warm.
Meanwhile, place onions in a large skillet (at least 12"). Add water to half-cover the onions (about 1 cup). Add 1 tablespoon butter, 1 teaspoon salt, and sugar. Cook over medium-high heat, stirring occasionally, until liquid has evaporated and onions are golden brown, about 12 minutes. Gently transfer onions to a large plate.
Melt remaining 2 tablespoons butter in same skillet over medium heat; add flour and whisk to combine. Cook, stirring occasionally and scraping up browned bits from bottom of pan, for 1 minute. Whisk in reserved milk, adding 1/4-cupful at a time. Cook, stirring constantly, until thickened and bubbly. Stir in remaining 1/2 teaspoon salt, pepper, and nutmeg. Add peas and onions; stir until heated through. Gently fold in crème fraîche.

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