Add the banana to a large mixing bowl and mash thoroughly until mostly smooth.
Add the applesauce and mix thoroughly with the banana, breaking apart any remaining large pieces of banana.
Add the pancake mix and stir until just combined.
Gradually add the water and mix until the batter reaches a thick but pourable consistency.
Fold in the mini chocolate chips, being careful not to overmix the batter.
Heat a large skillet or griddle over low-medium heat. Add the butter and oil, allowing the butter to melt and coat the surface of the pan.
For toddler-size pancakes, add 2 tablespoons of batter to the pan for each pancake. For adult-size pancakes, use 1/4 cup of batter. (For a baby-friendly recipe, see notes)
Cook for 3–4 minutes, or until the edges begin to set and the bottom is golden brown. Flip and cook for an additional 2 minutes, or until the pancakes are cooked through.
Repeat with the remaining batter, adding more butter or oil to the pan as needed.
Serve warm with your favorite toppings, and enjoy!