Mix flour, sugar, salt, baking powder, milk, oil, vanilla essence and enough water to form a smooth paste. The batter should be of a coating consistency. Add more water if required.
Take a frying pan of about 6'-7' diameter and heat oil in it.
When the oil gets hot, turn over the pan and drain the excess oil off it.
Increase the heat again, and pour batter in the pan.
Lower the heat and cover the pan for about 10 seconds. Uncover the pan.
When edges of the pancake start lifting on its own, the pancake is done.
Just loosen the edges and turn the pan upside down over a plate and serve.