Preheat the oven to 250°F. line a baking sheet with several layers of paper towels, and set a wire rack inside another. Peel the potatoes. Using the large holes of a box grater or the grater disk on a food processor, grate the potatoes and onion. Transfer to a clean kitchen towel. Gather the ends of the towel and twist to squeeze out as much liquid as possible into a large mixing bowl. Open the towel, toss the potato mixture, then repeat. Wait a few minutes to allow the potato starch to settle, then pour off the liquid in the bowl, reserving the potato starch that sticks to the bottom. Add the potatoes, onions, egg, matzo meal (or breadcrumbs), salt, and pepper to the bowl. Use your hands to blend the latke mixture until all of the ingredients are evenly distributed. Let the mixture rest for 10 to 15 minutes.