Make the topping first by melting 2 tablespoons butter in a skillet over medium heat. Add the sliced apples, brown sugar, cinnamon, water, and pinch of salt.

Cook the apples for 5–8 minutes, stirring occasionally, until tender and coated in a syrupy mixture. Keep the topping warm while preparing the pancakes.

In a large bowl, whisk together flour, brown sugar, baking powder, cinnamon, nutmeg, and salt. In a separate bowl, whisk milk, egg, melted butter, and vanilla.

Pour the wet ingredients into the dry ingredients and stir just until combined. A few small lumps are fine, and overmixing can make the pancakes tough.

Fold in the finely diced or coarsely grated apple, then let the batter rest for 5 minutes. This short rest gives the flour time to hydrate and helps the pancakes cook up lighter.

Heat a lightly buttered griddle or nonstick skillet over medium heat. Pour about 1/4 cup batter per pancake and cook for 2–3 minutes, until bubbles form and the edges look set.

Flip each pancake and cook for another 1–2 minutes, until golden brown and cooked through. Do not press down after flipping, since this can squeeze out the air that keeps them tender.

Serve the pancakes immediately with the warm apple topping and maple syrup. Add whipped cream, chopped pecans, or powdered sugar if desired.