Add the dry ingredients (except the sprinkles) to a large bowl. Gently stir to mix the dry ingredients.
Melt butter. Warm milk in the microwave for 30 seconds. Then in a medium sized bowl, add all of the wet ingredients and whisk until combined.
Pour the bowl of wet ingredients into the bowl of dry ingredients. Gently mix until just combined and a batter forms. Don't overmix the batter, lumps are ok. Add the sprinkles to the batter and gently fold them in. Rest the batter for at least 15 minutes.
Grease griddle with butter or oil. Add ¼ cup of batter to the griddle and cook on medium heat until bubbles form on the surface and begin to pop, about 3 minutes. Flip pancake and cook for an additional 2 minutes until cooked through. Repeat until all the batter is cooked.
To make Vanilla Glaze: in a small bowl mix powdered sugar, milk, and vanilla extract. Stir the mixture until smooth. If you prefer a thinner glaze consistency, add a little more milk.
Serve funfetti pancakes with vanilla glaze drizzled on top. Add whipped cream and extra sprinkles, if desired.
Notes
Optional toppings for pancakes: maple syrup, whipped cream, or jam/jelly.