You have to start this recipe one day ahead.
Rinse and soak rice in water for 4-6 hours. Set aside.
Dissolve yeast and sugar in ¼ cup water. Keep it in a warm spot for 10-15 minutes. Set aside.
Drain and place the rice in the large bowl of a food processor. Add water and grind to form smooth batter. Grind rice in batches, if necessary. Transfer it to a large bowl.
Place grated coconut in the food processor. Add enough water to grind to form smooth batter. Add coconut mixture to the rice batter in the bowl.
Place cooked rice in the food processor, and add enough water to grind to a smooth batter. Add it to the rice batter.
(Altogether, I added around 1 ½ cups of water)
Stir the yeast mixture into the batter. Cover the bowl with a tight lid, and leave to ferment for 8-10 hours or overnight.
When the batter has fermented and ready to make palappams, stir enough salt into it.
To make the pancakes, heat pancake pan (traditional appachatti) over medium-high heat. When the pan is warm, add ⅓ cup batter onto the center of the pan.
Use your both hands to hold the handles of the pan, and swirl the batter towards the sides of the pan. This will form a thin lace design. Place the pan over heat, cover with lid, and leave to cook for 1-2 minutes or until the center of the pancake is cooked through.
Repeat until all the batter is used up. Serve these palappams with your favorite side dish.