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1. Put oven rack in middle position, place rimmed baking sheet on rack, and heat oven to 200 deg. Toss potatoes, onion, and 1t salt in bowl. Place 1/2 of potato mixture in center of dish towel. Gather ends together and twist tightly to drain as much liquid as possible, reserving liquid in glass measuring cup. Put drained potato mixture to 2nd bowl and repeat process with remaining potatoes. Set potato liquid aside and let stand so starch settles to bottom, at least 5 min.
2. Cover potato mixture and microwave til just warmed through but not hot, 1 to 2 min, stirring mixture with fork every 30 sec. Spread potato mixture evenly over second rimmed baking sheet and let cool for 10 min. Don't wash out bowl.
3. Pour off water from reserved potato liquid, leaving potato starch in cup. Add eggs and stir till smooth. Return cooled potato mixture to bowl. Add parsley, 1/4 t pepper, and potato starch mixture and toss till evenly combined.
4. Set wire rack in clean rimmed baking sheet and line with triple layer of paper towels. Heat 1/4" depth of oil in 12" skillet over medium-high heat until shimmering but not smoking (350). Place 1/4c mound of potato mixture in oil and press with nonstick spatula into 1/3"-thick disk. Repeat until 5 latkes are in pan. Cook, adjusting heat so fat bubbles around latke edges, til golden brown on bottom, about 3 min. Turn and continue cooking until golden brown on second side, about 3 min longer. Drain on paper towels and transfer to baking sheet in oven. Repeat with remaining potato mixture, adding oil to maintain 1/4" depth and returning oil to 350 between batches. Season with s&p to taste, and serve immediately.
TO MAKE AHEAD: Cooled latkes can be covered loosely with plastic wrap and held at room temp for up to 4 hrs. Alternatively, they can be frozen on baking sheet til firm, transferred to zip-lock bag, and frozen for 1 month. Reheat latkes in 375-degree oven till crisp and hot 3 min per side for room-temp 6 min for frozen.