True about the children's game Jamey described. But that idea of something being "too hot to handle" has led to idiomatic use of the term "hot potato" to describe an issue or topic that no one wants to deal with. For example, in American politics, illegal immigration has become a "hot potato" issue -- politicians have tried to avoid offering solutions for fear of angering large numbers of voters.
By the way, good job spelling the word "potato" -- our former U.S. President Bush once corrected a 5th grader who wrote that spelling word on the blackboard during his visit, telling her that she forgot the "e" at the end (potatoe??). No one had the courage to correct the President at the time, but it made for a very funny news story the next day.