First extract coconut milk by grinding coconut with water. You can do in two batches. Use 1/2 cup water at a time.
Heat milk with sugar, powdered cardamom. Once sugar dissolves, mix to the coconut milk and keep aside.
Wash and soak rice, urad dal together for 3 hours. Drain water, grind to a smooth, fluffy batter using ice cold water.
Mix salt to the batter and beat well. The batter should be light, not water or too heavy thick paste.
Heat oil in kadai. When hot, put the flame to low or medium. Drop tiny balls of the prepared batter. Cook it well from all sides by stirring now and then.
Once its pale golden in colour and cooked well inside, drain in paper towel.
Add to the milk and serve.