1. Preheat oven to 500 degrees.
2. Rinse grated potatoes in cold water and press moisture out of them using paper towels.
3. Combine pepper, onion, and flour.
4. Place potatoes and seasoning mixture in bowl. Mix well. Chill for 15 minutes.
5. Lightly spray 2 baking sheets with vegetable cooking spray or line with baking-sheet liners. Divide potato mixture into 8 portions.
Form each portion into a mound in your hands.
Place 4 mounds on each cookie sheet and press each mound into the shape of a 5-inch pancake, approximately 1/4 inch thick.
6. Bake for 10 minutes. Press pancakes down with a spoon or spatula. Bake for 5 minutes more. Turn pancakes gently. Bake until second side is crisp, about 7 minutes.
7. Serve with applesauce.