Using the coarse side of a box grater, grate potato, parsnips and onion. Place grated vegetables in a large bowl of cold water. Let soak 3 to 5 minutes. Drain well in a colander.
Spread grated vegetables onto a clean kitchen towel and roll up. Twist towel tightly to wring out as much liquid as possible. Place vegetables in a medium bowl. Stir in matzo meal, eggs, baking powder, salt and pepper.
In a large nonstick skillet heat oil over medium-high heat. Working in batches of 4, drop 1 tbsp of the vegetable mixture per latke into the oil; flatten with a spoon. Cook 2 to 3 minutes per side or until golden. Transfer to a plate lined with paper towels to drain and season with salt to taste. Place in oven until ready to serve. Repeat with remaining vegetable mixture.
If desired, garnish with chopped dill and serve with sour cream or applesauce.