Squeeze excess moisture from potatoes with paper towels.
In a medium bowl, combine cream cheese and flour until blended.
Stir in egg, cream, onion salt, and cayenne pepper until smooth.
Add potatoes and cheese and mix well.
In a large skillet, heat 1/8 inch of oil to 375F.
Drop batter by 1/3 cupfuls into skillet and press lightly to flatten.
Fry for approximately 5 minutes per side or until potatoes are tender and golden brown.
Drain on paper towels.
Note; To freeze potato pancakes, arrange in a single layer on baking sheet/ Freeze overnight/ Place in a resealable plastic bag/ Can be frozen up to 2 months/ To bake, place frozen pancakes on a lightly greased baking sheet/ Bake at 400F for 10 to 12 minutes or until heated through.