Steps:
- Process onion and water in food processor fitted with steel blade until pureed and mixture resembles slush, about 30 seconds. Pass mixture through fine-mesh strainer into liquid measuring cup, pressing on solids with rubber spatula; you should have 3/4 cup strained onion puree. Discard solids in strainer. Whisk onion puree, ketchup, apple cider, Worcestershire, mustard, molasses, pepper, and 3 tablespoons cider vinegar together in medium bowl. Heat oil in large nonreactive saucepan over medium heat until shimmering; add garlic, chili powder, and cayenne and cook until fragrant, about 30 seconds. Stir in ketchup mixture; increase heat to medium-high, bring to boil, reduce heat to medium-low, and simmer, uncovered, until flavors meld and sauce is slightly thickened, about 15 minutes. You should have scant 4 cups sauce. Transfer about 2 cups sauce to serving bowl; leave remaining sauce in saucepan.
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