Depends on the type of potato and the freshness. Red potatoes with peels good, Yukon Gold good. Russet not so good. The skin is thicker, as it is a baker, and has a tendency to bitterness. Thinner skinned potatoes are wonderful with the peels, as long as the 'eyes' are taken out and there is no green under the skin.
I actually really like latkes with unpeeled potatoes. Part of my reason for not peeling is sheer sloth, but I appreciate the bit of extra flavor the skin adds, and supposedly it's nutritious as well, which is nice to think about as you eat lovely, fried potato latkes.
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You use the term "sloth" like it's a bad thing!
Unpeeled potatoes = Good!
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