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Peel and coarsely shred potatoes. Place potatoes in a large bowl; add enough water to cover potatoes. Stir well. Drain in a colander set over the sink. Repeat rinsing and draining two or three times until water runs clear. Drain again, pressing out as much water as you can with a rubber spatula. Line a salad spinner with paper towels; add potatoes and spin. Repeat, if necessary, until potatoes are dry. Transfer potatoes to a large bowl. Sprinkle potatoes with salt and pepper, tossing to combine.
In a 10-inch nonstick skillet heat 1 tablespoon of the oil and the butter over medium heat until butter foams. Add onion, sweet peppers, and garlic. Cook about 5 minutes or until tender.
Add potatoes and sage to skillet, stirring to combine; spread into an even layer. Gently press with the back of a spatula to form a cake. Cook, without stirring, about 12 minutes or until the bottom is golden brown and crisp.
Invert a plate over the top of the skillet. Carefully invert the skillet to transfer the potatoes to the plate. If needed, add the remaining 1 tablespoon oil to the skillet. Using the plate, slide the potatoes back into the skillet, uncooked side down. Cook for 8 to 12 minutes more or until the bottom is golden brown.