Heat a large non-stick pan over medium-high heat. Once hot, melt the 1 tablespoon of butter. Add the chopped apples to the pan, and stir, cooking them for about a minute.
Distribute the cinnamon and brown sugar over the apples, give them a stir, and add the water. Cook the apple topping for 5 minutes, until the apples have softened enough to your liking. Turn off the heat.
Make the pancake batter:
In a large bowl, sift together the flour, baking powder, salt, and sugar.
Make a well in the middle and pour in the milk, egg, and butter. Mix with a whisk or fork until smooth.
To the pancake batter, add ⅓ of the cooked apple and cinnamon topping. Gently fold it into the batter just enough to distribute it throughout.
Cook the pancakes:
Heat a non-stick griddle or large pan over medium-high heat, I set my griddle at 300-350 F, this will vary. Once hot, grease, spray, or melt butter on the hot surface.
Immediately, pour ¼ cup of apple pancake batter onto the greased pan. Cook the pancakes for about 2 minutes, until the edges begin to look defined and bubbles form. Flip the pancakes over and cook for another minute on the other side. Remove from the pan onto a plate and cook the remaining pancakes.
Serve:
Plate 2 to 3 pancakes per person and top with warm cinnamon apple topping. Drizzle with maple syrup if desired.
Notes
Use the right baking powder: Since pancake batter naturally has a mild, neutral flavor, it's important to use aluminum-free baking powder. The metallic flavor will ruin the taste, especially in fluffy pancake recipes that call for 2 or more teaspoons. Trust me on this one.