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Step 1
Move an oven rack to the middle position and preheat oven to 300°F. Line a large plate with paper towels. Place a wire rack inside a rimmed baking sheet and place in the oven. Prepare a large plate lined with paper towels.
Step 2
In a food processor fitted with a shredding disc, or with a box grater, shred the potatoes and onions. Pour on to a clean kitchen towel.
Step 3
Gather the towel around the potatoes and onions and squeeze over a sink or bowl to extract as much liquid as possible. Transfer the shredded potatoes and onions to a large bowl.
Step 4
Stir in eggs, flour, baking powder, 1 teaspoon salt, and 1/2 teaspoon pepper. Mix until uniformly combined (I like to use my hands).
Step 5
Heat oil in a large cast-iron or other heavy duty skillet to 325 degrees. Drop heaping rounded tablespoons of the shredded potato mixture in to the oil and flatten with a heatproof utensil. Do not overcrowd.
Step 6
Fry until golden brown on one side, 2 to 3 minutes, then carefully flip using a fish turner or other heatproof spatula. Continue to cook until the second side is golden brown and crusty, 1 to 2 minutes longer. Transfer to the plate lined with paper towels to drain.
Step 7
Repeat with remaining shredded potato mixture until all potato pancakes are cooked (you should have about 24 potato pancakes). Transfer to a baking sheet and place in the preheated oven to keep warm until serving time. Garnish with fresh chives and serve with applesauce and sour cream.