Combine potato and onion in a colander. Drain 30 minutes, pressing with the back of a spoon until barely moist. Combine potato mixture, flour, and next 4 ingredients (through egg) in a large bowl; toss well.
Heat a large skillet over medium-high heat. Add 2 tablespoons olive oil to pan, and swirl to coat. Spoon 1/4 cup potato mixture loosely into a dry measuring cup. Pour mixture into pan, and flatten slightly. Repeat procedure 5 times to form 6 latkes. Sauté 3 1/2 minutes on each side or until golden brown. Remove latkes from pan, and keep warm. Repeat procedure with the remaining 2 tablespoons olive oil and potato mixture to yield 12 latkes total. Combine applesauce and ground cinnamon in a bowl. Serve applesauce with latkes.