Potato Latkes with Caramelized Three Onion Relish

FOR THE POTATO LATKES:
Preheat oven to 250 degrees F.

Line baking sheet with paper towels. Place onions and shredded potatoes in a clean cotton dish towel. Ring towel over a sink to remove excess water. Place potatoes and onions in a mixing bowl. Add flour, baking powder, egg, one-teaspoon salt and pepper. Toss gently to coat evenly. Heat a large nonstick pan over medium heat. Pour in enough oil to fill the pan to about 1/4 inch high. Heat until a small drop of the potato mixture dropped into the oil sizzles quickly. Drop batter, by heaping tablespoonfuls into oil. Flatten with a spatula. Fry about 4 minutes per side. Repeat until the potato batter is gone. Sprinkle cooked latkes with salt and transfer to baking sheet to keep warm in the oven. Serve with warm Caramelized Three Onion Relish.

FOR THE CARAMELIZED THREE ONION RELISH:
Heat oil and butter in large nonstick skillet over medium heat. Add onions, garlic, salt and pepper; cook 30 minutes, stirring occasionally. Stir in thyme, sugar and vinegar. Cook and stir until liquid thickens. Remove from heat and store in a covered container for up to a week. Warm before serving with latkes.