Drain the water from rice.
Grind both rice and coconut to a smooth paste.
Add water as needed to make a thin paste-like batter, quite thinner than the regular dosa ones.
Add sugar and instant yeast. Whisk well.
If you want to add active dry yeast, bloom it and add to the ground mixture of rice and coconut.
Cover with a lid and keep it for fermentation overnight in a warm place.
Next morning it will swell up and becomes bubbly.
Add salt as per taste and whisk the mixture well.
Heat the appachatti or a non-stick pan on low flame.
When it gets heated just a bit, pour a ladle of batter in the center and quickly swirl the appachatti / non-stick pan so that the batter spreads in a circle.
Do not spread the batter with a spatula or spoon as it will break, only swirl the pan.
Also, if the pan is too hot, the batter will get cooked and will not spread.
Apply little oil all over and let it cook for a few minutes till it turns light golden brown.
The appam needs to be cooked only on the bottom side.
Remove and serve it with any stew or vegetable.
Let the pan cool down a little bit before making the next one otherwise, the batter will not swirl and spread.