In a large bowl, add the flour and salt, mix well.
Sprinkle half cup of the water little by little and mix the flour gently with your hands.
Sprinkle another half cup of water, and again mix with your hands gently.
Add the grated coconut (not the one kept for layering), and mix well with the flour.
Sprinkle the remaining half cup of water little by little and mix the flour with coconut, gently until everything is combined well. The flour will be wet, but still the texture will be like flour only.
Heat little water in the steamer and bring the water to a boil.
Meanwhile, you can spread a single layer of coconut in the steamer basket and then spread a thick layer of flour coconut mixture(you can put half of the contentover the coconut layer.
Again, add a single layer of coconut, and then add the remaining flour mixture over the coconut layer.
Finally, you may add one more layer of thin coconut layer (if needeor you may skip this step.
Gently press the contents in the steamer basket with your hands.
When the water in the steamer pot starts boiling, you can keep the steamer basket inside the pot and close the lid.
Reduce the heat to very low heat and steam for about 10 to 12 minutes or until the flour is soft and cooked.
Puttu is ready to serve, you can serve hot puttu with fresh bananas or sugar (if you like it swee, or savoury side dishes. The most popular combination of puttu is with chickpeas curry which is known as kadala curry. In Kerala, chickpea curry for puttu is made in different ways but the most popular one is prepared in roasted coconut gravy.