Melt butter in a skillet over medium heat. Add onions, and cook slowly until the onions have softened and turned deep brown, about 15 minutes. Warm the cream cheese over low heat in a small skillet until very soft.
Grill hot dogs until well browned. Lightly grill hot dog buns on both sides.
To assemble cheese dogs, spread warm cream cheese on toasted hot dog bun, add hot dog or sausage, top with onions, mustard and sauerkraut, if desired.
Serve with grill green bell pepper, ketchup and mayo.