Cook the whole cod fish with the bones, parsley stems and bay leaf in the milk over low heat until flaky - about 10 minutes.
Once cooked, remove the cod fish from the milk. Set the milk aside and let it cool for about 10 minutes. Pull the cod fish from the bones and shred into small flakes.
Pour the matzo meal into a mixing bowl. Add the slightly cooled milk, parsley, egg, onions, cod fish, nutmeg, salt, pepper and stir until combined.
Heat about a half inch of vegetable oil in a 12” saute pan over medium heat. Once the oil is heated, use a large spoon to spoon out the mixture into the oil and form latkes that are four to five inches in size. Cook the latkes until they're golden brown on both sides.
Move the latkes to a wire rack or a plate topped with a paper towel. Let them drain for a few minutes.
Garnish with diced parsley and serve.
Notes
Presoak the salt cod for about two days, changing the water three to four times until the cod is pleasantly salty.