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Preheat oven to 400°F. For the Pancakes, spray 12-cup muffin pan with no stick cooking spray. Set aside. Place all ingredients in blender container; cover. Blend on medium speed until smooth. Pour evenly into prepared muffin pan.
Bake 13 to 16 minutes or until edges of pancakes are golden brown. Cool on wire rack 2 minutes.
Meanwhile, for the Blueberry-Lemon Sauce, mix sugar and cornstarch in small saucepan. Add blueberries, water and lemon extract. Bring to boil on medium heat, stirring constantly. Boil 1 minute. Spoon sauce into center of each pancake. Sprinkle with confectioners’ sugar, if desired. Serve immediately.