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Place the basmati rice in a fine-mesh strainer and rinse under cold running water, stirring with your hand, until the water runs clear. Transfer to a bowl, cover with cold water, and soak for 20 minutes, then drain.
Heat the oil in a large heavy-bottomed pot over medium-high heat until shimmering. Add the sliced onion and cook, stirring occasionally, until deep golden brown and caramelized at the edges, 12–15 minutes. Reduce the heat to medium if the onion begins to scorch.
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