Creamy Tomato Soup

1 medium onion, chopped
2 tablespoons butter
2 cans (14-1/2 ounces each) diced tomatoes, undrained
2 cans (10-3/4 ounces each) condensed tomato soup, undiluted
1-1/2 cups milk
1 teaspoon sugar
1/2 to 1 teaspoon dried basil
1/2 to 1 teaspoon paprika
1/8 to 1/4 teaspoon garlic powder
1 package ( 8 ounces) cream cheese, cubed

In a large saucepan, saute onion in butter until tender. Stir in tomatoes, soup, milk, sugar, basil, paprika and garlic powder. Bring to a boil. Reduce heat; cover and simmer for 10 minutes. Stir in cram cheese until melted. Serve immediately. Makes 8 servings (2 quarts).