TO MAKE LATKES: Shred potatoes in a food processor; transfer to a bowl. Add water to cover; let stand 10 minutes. Drain and squeeze well; return potatoes to bowl.
Stir together potato, eggs and next 4 ingredients until blended.
Pour oil to a depth of 1/2 inch into a large heavy skillet; heat over medium-high heat. Drop potato mixture by 1/4 cupfuls into hot oil; fry 4 minutes on each side or until golden. Drain on paper towels. Serve with sour cream and Homemade Applesauce, if desired.
TO MAKE APPLESAUCE: Bring all applesauce ingredients to a boil in a Dutch oven; reduce heat and simmer, stirring once, 45 minutes. Drain; remove and discard cinnamon.
Process apple mixture in a blender until smooth. Yield: 10 cups.