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Step 1
Place potato and onion in a colander and use clean hands to squeeze out excess liquid. Transfer to a large bowl.
Step 2
Add cheddar and flour. Season. Toss to combine. Use a spatula to fold egg through mixture until combined.
Step 3
Lightly spray an air fryer basket with oil. In batches, place 1/4 cupfuls of the mixture in the basket, 2cm apart (see tips). Gently spread to create 8cm circles. Spray with oil. Cook at 190°C for 10 minutes or until golden brown. Use an egg lifter to transfer to a wire rack. Repeat with the remaining potato mixture.
Step 4
Serve pancakes warm (see tips) with yoghurt or sour cream.