Place a large skillet over medium heat and preheat the oven (or warming drawer) to 200 degrees F. After measuring the potatoes, place them in a sieve over a bowl and press down with paper towels to extract as much of the moisture as possible. Then mix all the latke ingredients thoroughly, in a large bowl. Set aside.
In a small bowl mix the ingredients for the dill sauce. Salt and pepper to taste and put in the fridge until ready to serve.
Add enough oil to coat the bottom of the skillet and place it over medium-high heat. Once the oil is hot, use a 2 tablespoon scoop to scoop the mixture into the skillet. Add 4-6 at a time, depending on the size of your skillet. Use the back of a spatula to flatten each mound into a 2-inch circle. Fry for approximately 2 minutes, then flip and fry another 2 minutes, until both sides are golden and crispy.
Place the crispy potato latkes on a plate lined with a paper towel and place in the oven to keep warm. Repeat with remaining mixture and oil. Once all the potato latkes are cooked, serve warm with the jalapeño dill sauce.