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Step 1
In a large bowl, mix together flour, sugar, yeast, and salt. Add the warm milk, egg, and melted butter. Mix until the mixture is moistened; your batter will be thick. Cover the batter and place it in a warm, draft-free place to rise for 1 - 1 ½ hours.
Step 2
Near the end of the rising time, peel, core, and dice the apples. Once the dough has risen, mix in the diced apples.
Step 3
Add enough oil to barely coat the bottom of 12” sauté pan (roughly 1 ½ - 2 Tbsp. Heat the oil over medium high heat, until the oil sizzles when small bit of batter dropped in. Drop the batter by large spoonful into the hot oil, spreading it out as thin as possible with the thick chunks of apples until you have a roughly 3 inch pancake. Fry the pancakes for 2-3 minutes over medium to medium high heat, until the bottom is golden and the top is just starting to dry out. Then, flip the pancakes and cook on the second side for 2-3 minutes, until golden. Remove the pancakes from the pan to a paper towel lined plate.
Step 4
Repeat the process with the remaining dough, adding more oil as necessary. (You can keep the finished pancakes on a plate in a 200⁰F oven to stay warm while you cook the rest. But, the pancakes are best crisp and fresh from the pan. So if you can serve them straight from the pan, do so.)
Step 5
Sprinkle with powdered sugar and serve.