Peel the potatoes and use a cheese grater to shred the potatoes. Add to a bowl of cold water and vinegar to remove the starch from the potatoes. Drain completely and spread the shredded potatoes on a kitchen towel. Wrap and squeeze out as much water as possible.
Add the potatoes back to the bowl and toss with salt, pepper and cayenne.
Heat a large nonstick sauté pan over medium-high, add the oil and heat through. Add the jalapeño then top with the potatoes in an even single layer.
Cook, untouched, until a golden brown crust forms, about 5 minutes.
Use a spatula to break up the potatoes and flip them in sections. Lower the heat to medium-low and continue to cook until the potatoes are crispy all over, about 8 minutes.
Serve topped with hot sauce with a side of bacon and eggs.