Soak raw rice for at least two hours. Put the drained rice into the blender, add in grated coconut, cooked rice, sugar, and salt.
Add 1 tsp instant yeast and water, water should just cover ingredients. Grind to a smooth batter.
Pour into a steel container or glass bowl and keep it for 2-3 hours or until the batter ferment and rise up.
Once the batter is fermented, mix with a ladle and if the batter is very thick you can adjust with water.
Place appa chatti over medium heat, and lightly grease it with a cloth dipped in oil. Pour a generous ladle full of batter, immediately turn and tilt the pan in circle so that the batter spreads in circle.
Cover and let it cook for 2 min. Covering with a lid is important as the steam from it will help the center part to get cooked.