Begin by peeling and grating the potatoes. Place the grated potatoes in a clean kitchen towel and squeeze out excess moisture.

In a large mixing bowl, combine the grated potatoes, chopped onion, shredded cheddar cheese, and egg. Mix well until combined.

In a separate bowl, whisk together the flour, baking powder, salt, black pepper, and garlic powder. Gradually add the dry mixture to the potato mixture, stirring until just combined.

Heat the vegetable oil in a large skillet over medium heat. Once hot, drop spoonfuls of the potato mixture into the skillet, flattening them slightly with the back of the spoon to form pancakes.

Cook the pancakes for about 4-5 minutes on each side, or until golden brown and crispy. Remove from the skillet and place on a paper towel-lined plate to drain excess oil.

Serve warm with sour cream or applesauce, if desired.