Bring a pot of salted water to a boil on medium high heat. Add the potatoes and cook until tender, a fork should easily slide in and out. Remove the potatoes with a slotted spoon or spider and drain well. Turn the pot of water down to a simmer.
In a bowl mash the potatoes and squash together well with a fork or potato ricer. Season with salt and pepper. Mix in the egg and flour until a soft dough forms. (use flour as needed so the dough isn't too sticky) Flour the surface of your counter and flour your knife as needed.
Quarter the dough ball. Using your hands roll each quarter into even sized ropes, roughly as thick as your thumb. Using your floured knife cut about thumbnail sized pieces out of the ropes. Lightly flour the pieces.
Bring the simmering pot of water back to a boil. Add the gnocchi into the water (in batches if needed) until they start to float. Remove with a slotted spoon and drain well, then set aside.
Heat a nonstick pan over medium heat. Once hot, add the butter and sage. Saute the gnocchi until golden brown.
Season with salt if needed. Serve immediately about 1/2 to 3/4 cup per portion.