Wash and peel potatoes. Peel onions. Cut both vegetables into large chunks. Using a food processor, grate some chunks of the potato, alternating with the onion chunks.
Place a colander large enough to hold the grated potato-onion mixture over a pot or bowl. Remove the grated potato-onion mixture from the food processor bowl and put in the colander. Let stand for five minutes.
Press down on the mixture to hasten the draining process. Repeat this pressing step two-three more times at five minute intervals. The ingredients will be ready when the mixture no longer squishes when pressed (in approximately 15 minutes).
Place the potato-onion mixture in a mixing bowl. Add all remaining items in the ingredient list except the cooking oil. Blend well.
Carefully, pour the liquid out of the bowl/pot which was placed under the colander during the draining step. At the bottom of the bowl, you will find a thick, starchy paste (potato starch). Scrape this paste out of the bowl and add to the potato-onion-egg mixture, blending well.
Heat 1/2 inch depth of oil (or oil-butter mixture) in a skillet. Use about 2 rounded tablespoons of potato mixture for each pancake. Drop into skillet and flatten with spatula. Fry pancakes about ten minutes total, turning once. The pancakes should be golden brown.
Occasionally, stir the contents of the bowl to maintain the same ratio of ingredients as you work through the total potato-onion mixture.
Serve immediately!! Ms. Sheraton says good potato latkes should be held in a
warm oven no more than 15 minutes before being served!!