Combine the first 10 ingredients in a large pot. Turn heat to medium and stir well to melt sugar and dissolve mustard.
Bring to a boil carefully (stirring often), reduce heat to medium low and allow mixture to simmer until onions are done stirring frequently, approximately 20 minutes.
Add the ketchup, Worcestershire and liquid smoke.
Stir mixture well and bring back to a simmer for approximately 45 minutes, stirring frequently. Let stand to cool, overnight is best.