Start by melting the butter in a small saucepan or microwave, then set it aside to cool to room temperature—this prevents the eggs from scrambling when combined. While the butter cools, add the yogurt, milk, eggs, and vanilla to a large mixing bowl. Whisk these wet ingredients together until well combined and smooth. Room temperature eggs will help the batter rise better and create fluffier pancakes.
In a separate bowl, whisk together the flour, sugar, baking powder, baking soda, salt, and nutmeg. This ensures the leavening agents are evenly distributed throughout the batter, which guarantees consistent rise and texture in every pancake. I always sift or whisk my dry ingredients when using baking powder and baking soda to avoid lumps.
Pour the cooled melted butter into the wet ingredient mixture from Step 1 and stir gently. Add the dry ingredient mixture from Step 2 to the wet ingredients and stir until the flour is just incorporated—some small lumps are fine and actually desirable. Overmixing develops gluten, which makes pancakes tough and dense rather than light and fluffy.
Let the batter rest for 10 minutes at room temperature. During this time, the baking powder and baking soda begin activating, and the flour fully hydrates, which results in better texture and rise when cooking. While waiting, preheat your griddle or nonstick skillet over medium-low heat.
Pour 1/3 to 1/2 cup of batter onto the preheated medium-low heat surface for each pancake. Cook for 2-3 minutes until bubbles form on the surface and the edges look set, then flip carefully. Cook the second side for another 2-3 minutes until golden brown. Medium-low heat prevents the outside from browning too quickly before the inside cooks through.
Transfer the cooked pancakes to a serving plate and serve warm with your choice of toppings. Greek yogurt pancakes are best enjoyed fresh off the pan while they're still fluffy.