In a medium stockpot bring 1 gallon of water to a boil. Place the tomatoes in and blanch until skin starts to separate from the flesh.
Place tomatoes in an ice bath immediately. Peel and rough chop.
Place the roughly-chopped tomatoes, onions, and thyme in a medium rondo or small stockpot on medium-low heat. Add sugar, vinegar, and bay leaves and cook on low heat for about 2-3 hours until almost all liquid is gone.
Spread on a half sheet tray and let cool.
Enjoy as a spread for crackers or cheese, as a garnish to entrées and more.