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Step 1
Heat the oven to 425°F and pour a generous ½ cup of the oil on a sheet pan.
Step 2
Use a box grater or a food processor fitted with the coarse grater attachment to grate the potatoes and onion.
Step 3
Transfer the mixture to a clean kitchen towel and place over a large bowl. Gather the edges of the towel and squeeze out as much liquid as you possibly can from the onions and potatoes. Let the mixture sit for 10 minutes after you think you’ve squeezed it all, then squeeze again—there’s always more water. Keep the potato mixture in the towel for a moment. Let the liquid sit in the bowl for 5 minutes, then gently dump out the water from the bowl, but make sure to leave any milky white potato starch that’s accumulated in the bottom of the bowl.
Step 4
Place the oiled sheet pan in the oven and set a timer for 10 minutes. Transfer the potato mixture from the towel to the bowl with the potato starch along with the egg, panko, 1 teaspoon kosher salt, and lots of black pepper. Mix with your hands until totally combined.
Step 5
Carefully remove the sheet pan from the oven. Scoop 8-10 ¼-cup-sized mounds (if you prefer “silver-dollar” latkes, do 2-tablespoon mounds) of the latke batter out and carefully place on the sheet pan. Use a fish or offset spatula to slightly flatten each mound. Bake for 20 to 25 minutes (or 15 to 20 minutes, for silver dollars), until deeply golden brown on the bottom and edges of the latkes.
Step 6
Remove the pan from the oven and flip the latkes, pressing down on the pancakes and letting any excess oil pool around the pan, then bake for an additional 10 to 15 minutes, until deeply golden brown on both sides. Transfer the latkes to a paper-towel-lined plate or clean sheet pan and sprinkle with flaky salt. Let sit for 5 minutes, then transfer to a serving plate. Add another ¼ cup or so of oil to replace what was soaked up by the first batch, then transfer to the oven for 10 minutes to warm the oil. Form and bake the remaining latkes while you eat the first round. Serve with applesauce, sour cream, lox, smoked trout, lemon wedges, and/or chopped chives and dill.