Peel and grate the potatoes using a coarse grater or food processor to create thin, hashbrown-like shreds. Place the grated potatoes in a clean kitchen towel or cheesecloth, and squeeze out as much excess moisture as possible.

Peel and finely grate the onion. You can also chop it finely if you prefer larger pieces. Squeeze out any excess liquid from the onion as well.

In a large mixing bowl, combine the grated potatoes, grated onion, egg, baking powder, flour, salt, and pepper. Use your hands to mix everything together until the mixture holds together well.

With your hands, scoop out portions of the mixture and gently form them into small patties. Aim for about 2-3 inches in diameter, but feel free to make them smaller or larger depending on your preference.

Heat the olive oil in a large skillet over medium-high heat. Make sure the oil covers the bottom of the pan to prevent sticking.

Once the oil is hot, carefully place the patties into the skillet. Don’t overcrowd the pan—cook in batches if needed. Fry the patties for about 3-4 minutes on each side, or until they’re golden brown and crispy.

Once the pancakes are cooked, transfer them to a plate lined with paper towels to drain any excess oil.

Serve the potato pancakes warm, with a dollop of applesauce or sour cream on the side if desired.