Place the potatoes in a large saucepan, cover with cold water and add 1 tablespoon salt. Bring to a boil and cook until the potatoes fall apart when a fork is inserted, 20 to 25 minutes. Drain well.
Heat the canola oil and butter in a large skillet over medium heat. Add the onion and jalapeno and cook until soft, about 5 minutes. Add the garlic and cook 30 seconds. Stir in the chile powder.
Add the potatoes to the skillet, season with salt and pepper and toss, slightly smashing the potatoes with a metal spatula. Press the potato mixture into one even layer and cook until golden brown on the bottom, about 5 minutes. Flip the potatoes and gently smash again into an even layer; cook until the bottom is golden brown, about 5 more minutes. Stir in the cilantro and lime zest.