Great question — answering as the UphillTech team:
In my own experience, yes you can peel and slice your potatoes if they are beginning to sprout. I know in many of the kitchens where I've worked it's common practice to store peeled potatoes and potatoes that are cut for chips submerged in cold water in the cooler. This will help the potatoes keep longer and prevent the peeled surfaces from browning and drying out, also the cold and lack of oxygen will prevent further sprouting.
Full answer by JestersKing: https://cooking.stackexchange.com/a/54608 (CC BY-SA 3.0).
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