Peel and grate potatoes.
Mix all ingredients together, except oil.
Pour oil into frying pan and heat. Fry just a very small amount to be sure your oil is hot enough. Too cool and your latkes will take on oil, too hot and they will burn before they are cooked through.
Drop potato mixture by tablespoon into frying pan.
Fry latkes until golden brown, turning to keep sides evenly cooked. Drain on brown paper bags or paper towels.
Be sure to work quickly with your fresh grated potatoes as they will oxidize and turn brown in a few, short minutes. If you must leave them for any period of time, cover in water. Just be sure to to pay attention to the next tip.
Squeeze as much liquid as possible from the potatoes and onions, too much liquid will keep the latkes from holding together and cooking properly.
When working with fried foods, if you need to keep the first few batches warm while you finish the rest, do not cover in an airtight container, this will retain moisture and the crunch will be gone. Try covering loosely with a paper towel, still allowing air to circulate. Or place on a cookie rack that has been set on a cookie sheet and place in a convection oven set around 200 degrees. Convection ovens do wonders for keeping crunch alive.
Serve warm with applesauce and sour cream. As with many fried foods, latkes are best served warm and fresh while the crunch is still crisp.