Activate yeast: In a bowl, mix yeast, sugar, and 1/2 cup of warm water. Let it sit for 10-15 minutes until yeast activates.
Prepare batter: In a blender, combine rice flour, shredded coconut, sugar, and 2 cups of water. Blend until smooth. Transfer to a bowl and mix in the yeast mixture.
Ferment batter: Cover the bowl and let it sit for 1 hour in a warm place.
Add salt: After an hour, stir in salt to the batter.
Cook Appams: Heat an 'Appam Chutti' or a pan on medium flame. Lightly oil the pan. Pour 3/4 ladle of batter in the center, swirl it around, and cook until edges are crisp and center is puffed up.
Serve: Enjoy the Appams with coconut chutney or vegetable stew.
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