In a medium bowl, whisk together the flour, sugar, baking powder, cinnamon and salt.
In another larger bowl, whisk the egg until beaten. Whisk in the milk, melted butter and vanilla.
Add the dry mixture to the wet mixture and whisk until just combined. Add the grated apples and stir until evenly distributed.
Heat a large nonstick pan or griddle over medium heat. Spray with nonstick cooking spray.
Scoop a level ⅓ cup of batter for each pancake and cook for 2-3 minutes, or until bubbles form on the surface and the edges look set. Flip and cook for 1-2 more minutes, or until golden brown and cooked through. Makes 8 pancakes.
While the pancakes cook, make the apple topping. In a small saucepan, melt the butter over medium heat. Add the diced apples, sugar, cinnamon, and salt. Cook for 8-10 minutes, stirring occasionally, until the apples are tender and the mixture is syrupy.
Serve the pancakes warm with the apple topping spooned on top.