The Best Vegetarian French Onion Soup

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INGREDIENTS
3 tablespoons unsalted butter, cut into pieces (olive oil for vegan)
4 lbs yellow onions, halved and sliced vertically into 1/4-inch-thick slices
2 cups water, plus extra for deglazing
1/2 cup dry sherry
6 cups low-sodium vegetable broth
6 sprigs fresh thyme
1 bay leaf
Salt and freshly ground black pepper
1 small baguette, cut into 8 1/2-inch slices
4 ounces Emmental, Gruyère or light Swiss cheese (substitute vegan or leave off for vegan)
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