In a large mixing bowl, add egg yolks, milk, vegetable oil and vanilla extract. Whisk until foamy. Sift in cake flour and whisk until well combined but do not over mix. The batter should still be runny.
In another large mixing bowl, add egg whites and white vinegar. With a hand mixer, whisk at a medium speed and then increase to high speed while gradually adding white granulated sugar in three portions. Beat egg whites just until you reach stiff peaks. Do not over beat or it can cause deflated pancakes. To check if egg whites are stiff enough, dip whisk into the meringue and lift it out of the bowl. If meringue does not drip, it is stiff enough.
Gently whisk meringue into the batter starting with one dollop to loose batter. Then add the rest and whisk batter 5-6 times. Then softly fold with a spatula until combined. Do not over mix the batter.
Optional: Quickly transfer pancake batter to a piping bag rested in a tall glass. This helps you create tall fluffy pancakes but if you don't have piping bags, skip this step.
In a large non-stick pan set on low-medium heat (level 3 on the dial), lightly grease with vegetable oil. Once the pan is hot, add ¼ cup batter into the pan forming a 3-4 inch wide pancake. Once the first layer solidifies a bit, add a second layer to make the pancake taller.
Spoon 1 teaspoon of water in empty surrounding spaces of the pan avoiding the pancakes.
Cover with a lid and let the pancakes steam.
Cook pancakes for 5-6 minutes on each side until golden brown and cooked on the inside. If they're still mushy inside, cook for another 2-3 minutes. If the pancake is undercooked, it can also cause for deflated pancakes. Serve hot and enjoy with your favourite toppings!