Rinse the raw rice a few times and soak for 4-5 hours or overnight. Drain the water completely.
Grind together the drained rice, coconut (if using), salt and 1/2 cup water. Grind it to a smooth batter.
Transfer the batter to a deep vessel and add 1 cup water. Mix well. Add 1.5 - 2 cups water and mix well. The batter should be pouring consistency, almost similar to the consistency of milk. Do a taste test and add more salt, if required.
Heat a non stick/ cast iron pan. Grease the pan nicely with oil. Mix the batter well and pour the batter and twirl the pan to spread the batter evenly. If there are any gaps while spreading, pour a little more batter to cover the gaps.
Cook on low-medium flame for around 2 mins or till the edges becomes a bit crispy and leaves the side of the pan. Using your fingers, fold the dosa into a semi circle. Bring together the corners to make a triangle. Transfer to a serving plate.
Adding coconut is completely optional. I used only 1/2 cup and the taste of coconut was very mild. If you want you can add more coconut.Make sure to stir the batter each time before making the dosa.Let the hot Neer dosa cool for a min or two and then keep it together with rest. Otherwise it will stick together and be clumpy.You can store the batter in fridge in for 2-3 days. Make sure you mix the batter really well, before using.