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1. Cook the bacon in a large pot over low heat until it begins to crisp.
2. Add the oil, butter, onions and sugar and increase the heat to medium, stirring well.
3. Simmer the onions until golden, partially covered, which takes about 20 minutes.
4. Reduce the heat and add the remaining ingredients.
5. Bring the pot to a boil and cook for 30 minutes, stirring often.
6. Before serving, add the basil and test for seasonings, adding more salt and pepper as desired.
7. Serve hot, sprinkled with Parmesan cheese and more basil.
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