Idaho Creamed Pearl Onions and Peas

In 10-inch skillet, heat 1 inch water to boiling over high heat. Add onions; heat to boiling. Reduce heat to low; cover and simmer 10 to 15 minutes until tender. Drain onions. When cool enough to handle, peel onions, leaving a little of the root ends to help onions hold their shape during cooking. Meanwhile, in 2-quart saucepan, melt margarine or butter over medium heat. Stir in flour, caraway seeds, salt, and pepper until blended and cook 2 minutes, stirring constantly. Gradually stir in milk and cook, stirring constantly, until sauce thickens and boils. Return onions to skillet. Add peas and sauce and cook, stirring, until heated through.