Heat oil in large skillet. Add onion; cook over medium heat stirring often, 3 minutes or until barely tender. Stir in paprika. Combine onion mixture and sour cream in medium bowl. Add salt and pepper to taste. Cover; refrigerate until ready to serve. Makes 1–2/3 cups.
To serve in onion bowl: Cut off top third of large red onion. Trim small edge off root end to make flat support. Peel onion. Scoop out inner layers, leaving outer two layers intact. Spoon dip into hollow onion.