Preheat the Oil: Heat about 3 inches of vegetable oil in a deep pot to 350°F (175°C).
Prepare the Batter: In a bowl, mix the pancake mix, egg, and milk until smooth. The batter should be slightly thick but not too runny.
Coat Marshmallows: Dip each marshmallow into the batter, ensuring it’s evenly coated. Gently shake off any excess batter.
Fry Marshmallows: Carefully place the coated marshmallows into the hot oil. Fry for about 30 seconds to 1 minute, turning occasionally, until golden brown.
Drain and Serve: Remove the marshmallows with a slotted spoon and drain on paper towels. While still warm, top with whipped cream, chocolate syrup, and sprinkles if desired.