Potato Peel and Popsicle were Chao from Sly's Sonic Adventure 2 series.
Potato Peel's name was originally Shazam but was quickly changed so it related to food like Popsicle's and later on, upon forgetting which name belonged to which Chao, switched Popsicle and Potato Peel's names around.
When playing in the Hero side, Sly takes care of Popsicle, giving him animals and food but when playing Dark, he does this with Potato Peel to turn them into differently aligned Chao. Sly's policy is to take care of a Chao when the other one falls asleep so neither of them feel bad for getting ignored.
Potato Peel and Popsicle were lost with Sly's original game when his Dreamcast stopped working. Sly restarted the series playing Sonic Adventure 2 Battle for Gamecube, finding that his sister had already started the game and hatched Chao whom Sly adopted.