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Wash and scrub potatoes thoroughly until cleaned.
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Using a sharp knife, slice potatoes crosswise into 1/8-inch-thick cuts, stopping when the knife reaches 1/2-inch from the bottom so the potato remains attached at the base. Rotate the potato and repeat lengthwise, making 1/8-inch-thick cuts without slicing all the way through.
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Place cut potatoes into a 2-quart square baking dish. Cover with vented plastic wrap. Cook in the microwave on high for 5 minutes.
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Combine garlic powder, onion powder, paprika, salt, and pepper in a small bowl. Brush potatoes with melted butter and sprinkle evenly with seasoning mixture.
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Preheat the oven to 425 degrees F (220 degrees C). Line a baking pan with aluminum foil and place potatoes on the prepared pan. Bake in the preheated oven until browned and crispy, 15 to 20 minutes.
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Stir together mayonnaise, sour cream, ketchup, horseradish, vinegar, garlic powder, onion powder, paprika, salt, and pepper in a medium bowl until smooth.
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Serve potatoes hot with dipping sauce on the side.
Air Fryer Method:
Preheat the air fryer to 400 degrees F (200 degrees C). Place potatoes in the basket and air-fry until browned and crispy, 15 to 20 minutes.
Recipe developed by Jaelyn Luong