Prepare the Cabbage: Begin by removing the outer leaves of the red cabbage if they are damaged. Cut the cabbage into quarters, remove the core, and then thinly slice the cabbage. The thinner, the better, as this will help the cabbage cook evenly and absorb the flavors.
Cook the Onions and Apples: In a large pot or Dutch oven, melt the butter over medium heat. Add the chopped onions and sauté until they are soft and translucent, about 5 minutes. Then, add the diced apples and continue to cook for another 3-4 minutes, until they start to soften.
Add the Cabbage and Liquids: Add the sliced red cabbage to the pot, stirring to combine with the onions and apples. Pour in the apple cider vinegar, water, and sugar, stirring to ensure the cabbage is well coated. Add the bay leaf and ground cloves, if using.
Simmer: Reduce the heat to low, cover the pot, and let the cabbage simmer for about 45 minutes to an hour, stirring occasionally. The cabbage should become tender, and the flavors will meld beautifully.
Season and Serve: Once the cabbage is tender, season with salt and pepper to taste. Adjust the sweetness by adding more sugar if desired. Remove the bay leaf before serving.