In medium bowl, combine dry ingredients: matzo meal, salt and sugar.
In separate bowl, add yolks and water. Whisk until fluffy and pale in color. Add to the dry ingredients and stir to combine. Allow to stand for 15-20 minutes.
In mixer, beat the egg whites until stiff peaks. Fold into the matzo-meal mixture.
Heat griddle or frying pan until drop of water dances on surface. Add some of the butter or margarine.
Drop mixture by tablespoon onto a hot, well-greased frying pan or griddle.
Cook for a couple of minutes on each side until golden brown.
Makes about 20 latkes.
Recommendations
You can substitute milk for water for a softer, flavorful latke.
For savory version, reduce or eliminate sugar and add fresh ground pepper.