I found this on ehow.com, and it pretty much goes along with the way my family makes Latkes. We use flour, not matzoh meal. I've done the rinse and recapture the potato starch method, but I'm not sure it's worth the extra time.
Latkes, or potato pancakes, are the traditional Hanukkah dish for Eastern European Jews. But the Hanukkah isn't in the potato; it's in the oil the latkes are fried in. When the Jerusalem Temple was recaptured and reconsecrated by the Maccabbees, only one night's worth of oil remained to light the temple. Miraculously, though, the oil lasted eight nights, or enough time to make more oil. That's the miracle of Hanukkah.
Ingredients (for about 24 small latkes):
3 large baking potatoes
salt
2 tbsp. matzoh meal or flour
1/2 onion
black pepper
vegetable oil (preferably olive)
1 egg
Steps:
1. Grate the potatoes and the onion. The weak can use a food processor.
2. Mix the grated potatoes and onion, beaten egg, salt and pepper, and matzo meal or flour in a bowl.
3. Heat a skillet over a medium flame.
4. Film the skillet with 1 to 2 tbsp. oil.
5. Form the potato mixture into small cakes - 2 to 3 tbsp. of potato per cake. Don't make them too big; they're easier to turn when small.
6. Flatten the cakes slightly with a spatula.
7. Cook until the cakes are nice and brown on the bottom, then turn and cook the other side.
8. Repeat with the remaining potato mixture.
Tips:
Keep the finished latkes in a warm oven until ready to serve.
Applesauce and sour cream are traditional accompaniments.
This is a traditional way of making latkes; they aren't the crispiest, due to the matzo meal, but they don't fall apart, either. (The meal or flour soaks up the moisture in the potatoes.) You can also make latkes by squeezing the liquid out of the potatoes into a bowl, then pouring off the liquid but saving the potato starch to add back, instead of flour.