In a deep-fryer or heavy-bottomed pot, heat enough canola oil to come halfway up the sides of the pot, to 375 degrees F.
Finely shred potatoes on a fine box grater. Season the potatoes with 1 1/2 tablespoons of salt and 1 teaspoon of pepper. Put the potatoes into a kitchen towel and squeeze out the excess liquid. Put the potatoes into a medium-sized bowl along with the egg and mix well. Add the flour and stir to combine. Stir in the cayenne, smoked paprika garlic powder, salt and pepper, to taste. The mixture should be workable but dry. Form the potatoes into balls or tots and fry, in batches, until golden brown, about 4 to 5 minutes. Remove from fryer and drain on a paper towel lined tray. Immediately season with salt and pepper, to taste. Transfer to a serving bowl and serve.
Reserve potato peels, which can be used in the Grilled Bratwurst with Braised Cabbage recipe.