Drain the socked rice and grind it along with the coconut shavings and cooked rice to a fine thick paste. Do not add too much water. Coconut water may be used instead of water for grinding. Add yeast and mix lightly. Mix in the salt and sugar to taste. Allow to ferment at room temperature for at least six hours.
Heat a non-stick wok. Pour approximately half a cup of batter and quickly but gently swirl the pan around such that only a thin layer of the batter covers the side and a thick layer collects at the center. Cover the lid and cook each appam on medium heat for about three minutes or till edges have become golden crisp (or when the edges start coming off the work) and the center is soft and spongy.