Step 1: Combine all ingredients EXCEPT shrimp in a medium saucepan. Bring to a boil on medium-high heat. Reduce heat; simmer for 10 minutes or until onion is tender and sauce thickens slightly, stirring frequently.
Step 2: Cool; refrigerate until cold.
Step 3: Fill a large bowl with crushed ice; place bowl of cocktail sauce in center of ice. Arrange shrimp on ice around bowl of sauce.
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