Grind the soaked rice in a blender with just enough water so that the ground material will be thick. In the early stages of grinding, take out about two table spoon of the partially ground rice and keep it apart for cooking and later mixing.(This will be called KURUKKU)
Mix separately 1 teaspoonful of yeast, quarter cup of luke warm water and 1 tablespoon of sugar and allow the mixture to rise.
Prepare the Kurukku by cooking the partially ground rice saved earlier like a thick porridge.
Mix together the ground rice, the Kurukku, the yeast mixture and the ground coconut.
Allow the mixture to ferment for about 6 hours.
Add sugar and salt as your taste dictates.You can add a little coconutmilk to adjust the consistency.(You can add one beaten up egg at this stage if you fear appams sticking to the pan. Or you can wrap a half fried egg in cloth and use it to rub the frying area of your pan.)
Now put the mixture in a warm oven for 2 hours just before you make the Appams.
:-AFTER IT RISES, DO NOT STIR.
Use a cast iron pan to make the appams and use the same technique that one uses for pancakes.