Preheat your oven to 400°F (200°C). In a large skillet or Dutch oven over medium heat, melt the olive oil and unsalted butter together. Add the thinly sliced sweet onion and cook, stirring occasionally, until the onions are deeply caramelized and golden brown, about 20 minutes. I always take my time with this step—the slower you cook the onions, the sweeter and more flavorful they become.
Pour in the white wine to deglaze the pan, scraping up any browned bits from the bottom. Add the fresh minced thyme (or dried thyme) and beef broth, then bring the mixture to a simmer. Add the gnocchi and stir occasionally over medium heat until the gnocchi is tender and the sauce has thickened and reduced, about 5-10 minutes.
Season the gnocchi mixture with salt and pepper to taste. Transfer everything into a greased medium baking dish and spread it out evenly. Top with the shredded Swiss or Gruyere cheese. For a deeper flavor, I personally prefer using Gruyere.
Bake the assembled gnocchi at 400°F (200°C) for 20-25 minutes, or until the cheese is lightly browned and the gnocchi is bubbly. Remove from the oven and let it cool slightly before serving.
Serve the hot gnocchi bake with French bread slices on the side for dipping. Enjoy every cheesy, savory bite!