Place the grated potatoes in colander and run cold water overtop. Place in cheesecloth and wring out as much water as possible.
Place oil in a hot pan. Add half the potatoes in pan. Top with the onions, cheese, and bacon. Place the other half of potatoes on top. Fry until golden then flip and fry on the other side. Keep flipping and frying until most of the potatoes are crispy and the cheese is melted.