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1. Allow eggs and milk to stand at room temperature for 30 minutes. Meanwhile, preheat oven to 425 degrees F.
2. In a small bowl stir together 2 tablespoons of the granulated sugar and 1/4 teaspoon of the cinnamon. Add apple slices; toss until well coated.
3. Place butter in an oven-proof skillet.* Heat skillet in oven about 2 minutes or until butter melts. Remove skillet from oven; swirl skillet to coat surface.
4. Spread apple slices evenly in skillet. Bake about 10 minutes or until apples have softened slightly and butter is bubbling and beginning to brown around the edges.
5. Meanwhile, for pancake batter, in a blender combine eggs, milk, flour, vanilla, salt, the remaining 1 tablespoon granulated sugar, and the remaining 1/2 teaspoon cinnamon. Cover and blend about 1 minute or until well mixed and frothy.
6. Remove skillet from oven. Pour batter evenly over apples. Bake for 25 to 30 minutes or until puffy and golden brown. Cool slightly in skillet on a wire rack. (Note: it will deflate quite a bit.) Dust with powdered sugar. Cut into wedges.