Using a food processor fitted with a coarse grating disk, grate the potato and onion; discard any large pieces. Transfer the mixture to a clean dish towel and squeeze out any excess liquid, then transfer to a large bowl. Stir in the flour, egg, 3/4 tsp. salt, 1/4 tsp. pepper and the baking powder.
In small bowl, whisk together 1/2 cup creme fraiche, 1 1/2 tbsp. fresh grated horseradish and generous pinch salt; cover and refrigerate. To food processor, add 2 medium peeled raw beets (about 6 oz.) with potato and onion. Add 1/4 cup finely sliced scallion greens and 1 tbsp. chopped fresh dill to batter.
In a medium skillet, heat 1/4 inch oil over medium-high heat until hot but not smoking. Working in 5 to 6 batches, drop 2 tbsp. scoops of batter into the pan about 2 inches apart. Using a spatula, flatten the batter into disks. Cook, turning once, until browned and crisp, about 5 minutes. (Lower the heat if the latkes darken too quickly.) Drain on paper towels. Serve with horseradish cream.