Combine all potatoes in a blender or food processor along with onion, egg, flour, parsley, baking powder, salt, pepper, onion powder, Worcestershire sauce, and nutmeg. Blend until smooth.
Heat oil in a large skillet over medium-low heat. Pour 1/4 cup of batter into pan at a time to form pancakes. Fry for about 3-5 minutes on each or until golden. Place on paper towel-lined plate to drain. Add more salt and pepper to taste. Serve with crumbled bacon or shredded cheddar cheese if desired.