Stir together potato flakes, pancake mix, onion, Cheddar cheese, milk, egg, olive oil, garlic powder, salt, pepper, and cayenne pepper in a bowl until well combined.
Grease a griddle or large skillet and place over medium heat. Drop pancakes, 1/4 cup at a time, onto the hot griddle and cook until edges look dry and one bubble appears in the center, about 3 minutes. Flip pancakes and cook until browned on the other side, about 3 more minutes.