Peel potatoes and place in cold water. Using a box grater (or food processor) grate potatoes and onions in a large bowl. Transfer potato and onion mixture to a colander. Squeeze out excess moisture. In separate bowl combine eggs, matzo meal, fresh dill, salt and pepper. Combine all ingredients, adding more matzo meal if mixture is too wet. In large skillet, heat 1/2 inch oil over medium high heat. Drop tablespoon or serving spoon size portions of mixture in hot oil, and press down with spoon to flatten. Fry until brown and crispy on edges, turn until golden brown on each side, cooking 3 minutes per side. Remove to paper towels to drain. Serve immediately with applesauce and sour cream.
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To save on calories, I have also baked them. Preheat oven to 450 degrees. Spray very large cookie sheet with nonstick spray. Drop potato mixture by generous 1/3 cups, about 2 inches apart, onto prepared cookie sheet to make 12 mounds. Press each mound slightly to flatten into a 3 inch round. Bake latkes 15 minutes. With wide metal spatula, turn latkes over and bake 15 minutes longer or until browned and crisp on both sides.
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