Grate the potatoes and apples together in a food processor. Put the shredded mixture into a colander and squeeze out the liquid.

Place the mixture in a bowl and add the egg and flour and salt and pepper to taste. Mix well.

In large, non-stick skillet, heat enough oil to cover bottom of the pan.

Spoon out the batter into the pan (approx 2 to 3 tablespoons per latke), being careful not to crowd the latkes. Cook until crisp and brown on one side, then turn and fry on other side. Drain on paper towels.

Keep finished pancakes warm in oven until all pancakes are fried.

Sprinkle with powdered sugar if desired just before serving.