Scallops with Potato Pancakes and Caviar Sauce

Scallops with Potato Pancakes and Caviar Sauce was pinched from <a href="http://www.foodandwine.com/recipes/scallops-potato-pancakes-and-caviar-sauce" target="_blank">www.foodandwine.com.</a>
INGREDIENTS
PANCAKES
1 pound baking potatoes, peeled
1 large egg, lightly beaten
1/4 cup matzo meal
1/4 cup grated onion
Salt
Vegetable oil, for frying
SCALLOPS AND CAVIAR SAUCE
1 1/2 cups Champagne
9 black peppercorns
3 thyme sprigs
1 bay leaf
1 large shallot, thinly sliced
1 teaspoon fresh lemon juice
1 1/2 tablespoons crème fraîche
1 1/2 sticks (6 ounces) cold unsalted butter, cut into tablespoons
1 ounce caviar
Salt
Vegetable oil, for frying
20 medium sea scallops (1 pound)
2 tablespoons minced chives
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