To keep latkes warm, heat oven to 250°F. Have a baking sheet ready. Line a plate with paper towels.
Mix the flour, baking powder, salt and white pepper in a small bowl.
Peel potatoes. With a coarse grating or shredding disc of a food processor or large holes of a grater, grate the potatoes and onion, alternating potato and onion. Transfer mixture to a strainer. Squeeze it by handfuls, removing as much liquid as possible.
Transfer mixture to a bowl. Add egg; mix well. Add flour mixture; mix well.
Heat ½ cup oil in a deep, heavy large skillet over medium heat. For each latke, slide 1 heaping tablespoon of potato mixture into pan. Flatten it with back of a spoon to a pancake about 2½ inches in diameter. Add more pancakes without crowding.
Fry until crisp and golden brown, about 4 minutes per side; use 2 pancake turners to turn them carefully so oil doesn’t splatter. Transfer them to paper towels. Stir batter before frying each batch. Reduce heat if necessary so latkes don’t become too dark. Add more oil to the pan as needed; heat it before adding more latkes. Keep them warm in 1 layer on baking sheet in oven. If last few spoonfuls of batter are watery, leave the liquid in the bowl to prevent splatters.
Before serving, pat latkes with paper towels. Serve hot or warm, with the sauce, extra pepper purée, olives, parsley and hard-boiled egg quarters.