Grind rice, grated coconut and salt into a very thick paste (Note- it need not be a fine paste) adding very little water. In case the ground mixture turns out to be thin, heat the mixture in a vessel till you get the mixture of required consistency or add rice powder.
Make small balls of the paste.
Take a piece of cotton cloth and put the ball in the cotton cloth and cover the paste with the other end of the cloth and press it into a circular shape of around 2 inch diameter.
Deep fry it in oil in a kadai. Turn it upside down and fry till it is light brown in colour.
Kai vada goes very well with coconut chutney or coriander chutney.