Preheat a griddle to about 350. You can also use a large frying pan.
In a medium bowl, combine the flour, sugar, and baking powder.
In a separate bowl, combine the milk, egg, vegetable oil, and vanilla.
Add the wet ingredients to the dry ingredients and mix until just combined. Do not over-mix.
Take 1/4 cup of cherries and finely chop them into small pieces.
Add the cherries and chocolate chips into the pancake mix.
Using a 1/4 scoop, add the batter to the griddle. It will be ready to flip when bubbles appear on the edges of the pancake. Cook both sides until golden brown.
Chop up the remaining 3/4 cup cherries.
In a small sauce pan combine the cherries, water, and sugar.
Place over medium heat until a boil, and cook until the mixture thickens.
Top your pancakes with the cherry sauce and enjoy!