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Combine dry ingredients and mix slightly.
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Add milk, oil, water, and vanilla. Whisk together until just combined. Be careful not to over mix - it should still be slightly lumpy. Set aside to rest for a few minutes.
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Heat a large skillet over medium-high heat until hot. While pan is heating, add butter. As soon as the butter is melted, add melted butter to pancake batter.
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Return pan to stove and stir butter into batter.
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When pan is hot, with a measuring cup or ladle, pour 1/4 cup of batter into the skillet for each pancake.
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Cook until bubbles form on the surface. Carefully flip pancakes with turner/spatula and cook until golden brown.
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Note: This recipe also works well with whole wheat flour. Chopped fruit, nuts or chocolate chips can be added to batter before cooking for a unique treat.