Chop cabbage into thin strips and place in strainer. Rinse in cold water.
In a pot or dutch oven (with lid), add oil and butter over medium heat. Add onion and cook for 2-3 minutes, then add garlic. Stirring frequently, cook for 1 minute.
Add peppers, carrot, and green onion. Stir to combine and cook for another 3-4 minutes.
Add cabbage, dry seasoning, thyme, and water (do not add sugar and vinegar until the end).
Reduce heat to medium low and place lid on pot. Allow cabbage to steam for about 10 minutes.
Once cabbage is tender, mix in vinegar and sugar and cook for 1-2 minutes.