Prepare the potatoes: Peel the potatoes and grate them using a box grater or food processor. Place the grated potatoes in a clean kitchen towel and squeeze out as much excess moisture as possible.
Mix the ingredients: In a large bowl, combine the grated potatoes, grated onion, eggs, flour, salt, pepper, and nutmeg (if using). Stir until well combined.
Heat the oil: In a large skillet, heat about 1/4 inch of vegetable oil over medium-high heat until shimmering.
Fry the pancakes: Scoop about 2 tablespoons of the potato mixture into the pan for each pancake, flattening them with the back of a spoon. Cook for 3-4 minutes per side, or until golden brown and crispy.
Drain and serve: Remove the pancakes from the pan and place them on a plate lined with paper towels to absorb excess oil. Serve immediately with applesauce or sour cream.