Shred potatoes. Immediately submerge in bowl of cold water. When ready to cook, drain well. Spread on cloth towel, roll towel jelly roll fashion and squeeze potatoes gently to remove moisture. Transfer to mixing bowl. Add zucchini, egg, flour, salt, nutmeg and pepper and toss with hand to mix ingredients. Heat 1 tablespoon each butter and oil in large skillet over medium- high heat. When pan is sizzling hot, spoon about 3 tablespoons potato mixture into skillet shaping carefully into compact 3 inch circle. Repeat until skillet is filled, making sure pancakes are not touching. Cook until golden on underside. Shape pan and turn pancakes over. Press lightly with spatula and let cook until brown and crisp.
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