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Glazed Shallots with Chile and Thyme

['4 Tbsp. unsalted butter', '1 1/2 lb. medium shallots, peeled, halved if large', 'Kosher salt', '3 Tbsp. sherry vinegar or red wine vinegar', '3 large sprigs thyme, plus 1 tsp. thyme leaves for serving', '2 red Fresno chiles, halved lengthwise, seeds removed', '1 Tbsp. sugar']

Preheat oven to 400°F. Heat butter in a large skillet over medium, swirling until foaming subsides. Arrange shallots in a single layer in skillet, flat or cut side down where possible. Season well with salt and cook, undisturbed, until deep golden brown underneath, about 5 minutes. Turn and cook until deep golden brown on the other side, about 5 minutes. Add vinegar and 1 cup water, then add thyme sprigs, chiles, and sugar and swirl skillet to combine. Bring liquid to a boil; reduce heat so liquid is at a simmer. Transfer skillet to oven and roast shallots, turning halfway through, until sauce is reduced to a glaze and a paring knife easily slides through centers, 35–40 minutes. Taste and season with more salt if needed.
Spoon shallots and glaze into a serving dish and top with thyme leaves.
Shallots can be cooked 2 days ahead. Gently reheat in a large saucepan (or in the microwave in 30-second intervals) with a little water to loosen up glaze.

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