Generously spray inside of large dutch oven with nonstick cooking spray. Place butter in pot and add onions and salt. Cook on the lower rack of the oven at 400 deg with the top on. Remove pot from oven and stir bottom and sides. Return pot to oven with lid slightly ajar and continue to cook until onions are very soft and golden brown about 1 3/4 hour stirring pot at 1 hour.
Remove pot from oven and place on med-high burner. Cook, stirring frequently and scraping bottom of pot, until liquid evaporates and onions brown, 15-20 min.
Continue to cook, stirring frequently,until bottom is covered with dark crust, 6-8 min. Add 1/4 cup water and deglaze bottom.
Continue to cook, stirring frequently,until bottom is covered with dark crust, 6-8 min. Add 1/4 cup water and deglaze bottom.
Continue to cook, stirring frequently,until bottom is covered with dark crust, 6-8 min. Add 1/4 cup water and deglaze bottom. If required continue for another cycle so onions are very dark brown.
Stir in sherry and cook, stirring frequently, until sherry evaporates, 5 min.
Stir in water, broth, thyme, bay leaf, and 1/2 tsp salt scraping bits of brown crust from bottom and side. Bring to simmer, cover, and cook for 30 min.
While soup is simmering arrange baguette slices in single layer on cooking sheet and bake in 400 deg oven until bread is dry, crisp, and golden at the edge, about 10 min.
Remove herbs, salt and pepper to taste. Add to crocks, top with baguette slices, sprinkle with cheese and broil until cheese is melted and bubbly around the edges, 3-5 min.