Slice onions thinly and cook in butter for an hour, stirring often. Cover just as soon as they start to turn brown.
After they are very soft and brown, add the sugar and cook 5 more minutes.
Butter and toast the large pieces of bread. 20 minutes in the oven at 350° until they are well toasted.
Cook the onions with the water, wine, bay leaf, thyme and bouillon cubes.
Bring to boil then simmer for 20 minutes.
Place a piece of bread in the bottom of the tureen, followed by Swiss cheese.
Fill with soup until close to the top.
Add another piece of bread, then sprinkle more cheese, nutmeg and pepper.
Broil for 5 to 10 minutes.