Grate the Potatoes into a large bowl. Stir in baking powder, salt and egg. Work in enough of the flour in small amounts at a time to make it easy to handle dough. You will probably not need the entire 1/4 cup.
Drop the dough by 1/2 Teaspoons into 6-8 quarts of salted boiling water. Cook dough for ten minutes, then drain.
Place the cooked dough balls into a bowl. Mix in half of the butter in 1/4 inch pieces.
In a saute pan or frying pan, steam the cabbage with about 3 teaspoons of water covered for 30 minutes. Add remaining butter and fry cabbage until brown. Salt lightly.
Add dough balls to warm or add separately on top of cabbage to serve.