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Can anyone suggest whether for UK born child, it is possible to apply for combined MN1 and passport application (I have seen combined AN and passport applicants on this forum). I understand requirements of MN1 but do not understand what else is needed to make passport application at the same time (for example, a passport form (where can i find it?), any additional photos,any documents in addition to those needed for naturalization ). As referee is needed for passport stage as well, does it mean I need to have passport form already filled in before I go for NCS appointment?

Read through Combined Applications (click) and have a look at some of think links in there that members have posted.

http://www.immigrationboards.com/britis ... 99520.html

I am not sure if the combined process is available for MN1 applications.

I called Brent Council. They were very helpful and confirmed we could submit combined MN1 and Passport application. After I booked an appt for my kid's application, they sent out a Passport form by post, and also mentioned we could get the Passport form from a post office instead if the mail doesn't reach on time etc.

You will need to submit:
Child's full birth certificate (listing both parents' names),
Child's current BRP,
Both Parent's Passport + BRP (as appropriate)
Parents' Marriage Certificate
Child's Photo should be same for MN1 and Passport form (1+2)

I have not yet applied for my daughter (the appt is next week) so haven't delved into the forms etc yet. I suggest you call your closest council that handles combined applications. You may have to wait a while on the phone but you can clarify all your questions.
Link for Brent Council: https://www.brent.gov.uk/your-community ... ng-service
Phone: on 020 8937 1010