Sort through the lentils to remove any bad ones. Rinse and drain, then set aside.
Finely chop one onion for cooking, and slice the other two into thin strips for topping.
Turn on the sauté setting on the Instant Pot. Add olive oil, then the chopped onion. Cook until soft, translucent, and lightly golden.
Add the rinsed lentils, water, salt, black pepper, and bay leaf. Mix well. Cancel the sauté mode. Close the lid and set to pressure cook on high for 5 minutes.
Once the cooking time is done, do a quick release. Open the lid, stir, and add a little water if the mixture looks too dry.
Add the rinsed bulgur wheat (or rice if preferred). Stir, close the lid, and pressure cook for 2 more minutes on high.
When done, do another quick release, open the lid, mix well, and set aside.
While the mujadara is cooking, make the caramelized onions. In a pan, heat olive oil, add the sliced onions, and cook over medium heat until deeply golden and crispy.
Serve the mujadara warm, topped with the caramelized onions. Enjoy with a side of salad, fresh veggies, or warm pita bread.