Bring water and 1/2 cup sugar to a boil in a small saucepan until sugar is dissolved, about 5 minutes; remove simple syrup from heat and allow to cool slightly while preparing remaining ingredients.

Mix flour, remaining 1 cup sugar, milk, and baking powder in a bowl until blended.

Heat a lightly oiled griddle over medium heat.

Drop batter by large spoonfuls onto the griddle and cook until bubbles form and edges are dry, 3 to 5 minutes.

Flip and cook until browned on both side, about 3 minutes more.

Repeat with remaining batter.

Stir peanut butter and about 1/2 cup simple syrup in a bowl until smooth, adding more syrup as needed.

Serve peanut butter sauce on top or as a dipping sauce.