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Peel potatoes. Coarsely shred potatoes using a handheld shredder or a food processor with a coarse shredding blade.
Place shredded potatoes in a large bowl; add enough cool water to cover potatoes. Stir well. Drain in a colander set in a 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 oil and the butter over medium-high heat until butter foams. Add potatoes to the skillet, spreading into an even layer. Gently press with the back of a spatula to form a cake. Reduce heat to medium. Cook, without stirring, about 12 minutes or until the bottom is golden brown and crisp.
Invert a baking sheet or plate over the top of the skillet. Carefully invert the skillet with the baking sheet or plate to transfer the potatoes to the baking sheet or plate. If needed, add the remaining 1 tablespoon oil to the skillet. Using the baking sheet or plate, slide the potatoes back into the skillet, uncooked-side down. Cook, without stirring, about 8 minutes more or until the bottom is golden brown. If desired, sprinkle with paprika before serving.