Grate potatoes and onion. (I use a box grater.) Transfer shredded potatoes onto a clean kitchen towel. Squeeze excess moisture.
Combine grated potatoes, onion, eggs, flour, nutmeg, and salt in a medium mixing bowl.
Heat vegetable oil over medium-high heat. Drop a ¼ cup of the potato pancake mixture into the hot oil. Use the back of the cup to lightly flatten the pancake. Add 3-4 additional scoops (depending on the size of your skillet or frying pan). Make sure to leave space between the pancakes.
Fry until golden-brown on both sides, flipping once.
Transfer onto a paper towel-covered plate. Allow excess oil to drip off. Serve with a side of apple sauce.