Peel the potatoes and take the skin off the onion.
Use a box grater to grate the potatoes and peeled onion into a bowl. The kids might like to give this step a try!
Pick up handfuls of the grated potatoes and onions and squeeze them over the sink to get rid of the moisture.
Return the grated mixture to the bowl and stir in the egg, flour and salt and pepper to taste. Mix well.
Heat oil over medium-high heat in a frying pan.
Add potato mixture in small (about ¼ cup) mounds to the hot oil.
Fry about 4 minutes, until golden brown and then carefully turn with a spatula.
Flatten the mounds slightly and fry another 4 minutes until brown on both sides.
Remove from pan and drain on a plate covered in paper towels.
Serve with applesauce or sour cream.