In a mini food processor, add cubed potatoes and blitz until finely shredded.
Remove the blade and add the egg, salt, pepper, chilly, red chilly powder, onion and basil and mix until all the ingredients are incorporated.
Grease a cast iron tawa, heat it and add the whole mixture into it.
Using a spoon, spread it evenly to cover the whole tawa. Cover and cook on low flame until the bottom is browned and the pancake is firm to flip.
Flip the pancake, and cook further until the other side is also brown.
Slice it into wedges, sprinkle chat masala and serve with onion slices and lemon wedge.