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Preheat oven to 350 degrees.
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In a small skillet, saute onion and 1 tbsp of butter until the onion is golden brown and caramelized.
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Remove from heat and set aside.
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Wash potatoes with skin on and cut into quarters.
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Add water, salt and potatoes to a large pot.
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Bring to a boil and cook for 10 minutes.
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Potatoes should still be firm.
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Drain into a colander and allow to dry for 5 minutes.
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Place potatoes back into the pot and place over the turned off burner.
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Add the remaining 2 tbsps. of butter and toss the potatoes until the butter is melted.
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Add the seasoning salt, paprika, and the onions, stir to coat potatoes.
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Place potatoes into a 13x9 inch baking dish and bake for 25-30 minutes or until potatoes are golden brown and fork tender.