Melt butter in a large skillet over medium heat. Add onion, and saute 5 minutes or until tender. Add cabbage; cook, stirring often, 2 minutes. Add 1/4 cup water, salt, and pepper; cook, covered, 10 minutes or until cabbage is crisp-tender. Stir in carrot, vinegar, and caraway seeds; cook, uncovered, 5 minutes. Serve warm.
NOTE: This dish may be made up to a day in advance and reheated.