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1. Shred potatoes and onion on coarse side of box grater or grater blade of food processor. Spread in single layer in tea towel; roll up tightly and squeeze out excess moisture. Discard liquid.
2. Transfer shredded mixture to large bowl; mix in eggs and butter. Stir together bread crumbs, flour, baking powder, salt and pepper; toss with potato mixture until well combined. Shape 1/4-cup portions into 2-inch patties, making 8 patties total. Place on parchment paper–lined baking sheet; refrigerate for about 10 minutes to firm up.
3. Set CRUX Air Fryer temperature to 350º. Coat each patty with cooking spray. Add 2 patties to air fryer basket (do not overfill). Air fry, turning once, for 10 to 12 minutes or until golden brown and crisp.
4. Serve each latke with smoked salmon, red onion and sour cream. Garnish with capers and dill.