I'm using nonstick pans on my induction cooker without any issues. Also frying pancakes is fine.
So, if something smells weird, it must be a particular issue with your pan, not a general induction-cooker-vs-nonstick-pan thing.
375 F (190°C) should not be a problem for any decent cookware, regardless of the cooker the cookware is being used on. This holds true, regardless whether you're using Teflon, Ceramic or a stainless (uncoated) pan.