This is a traditional sweet from the Matale district.
2 cups Urad Dal (Undu) washed and black skin removed 1 cup rice flour 2.5 cups coconut milk 1 teaspoon salt 3 -4 cups good quality Kithul treacle 1 cup water
Cut a 1/2cm diameter circular hole in a clean muslin cloth and sew the margins of the hole. Soak urad dhaal in water overnight and drain the water. Grind it to a thick paste using a blender. Mix the paste with rice flour and add 1 cup of thick coconut milk. Add water/flour until the batter is not too thick or too watery. It should have the consistency of a well mashed potato. Add a salt to taste.
Heat the oil in a large frying pan in medium heat. Using the hole in the cloth as a nozzle squeeze the batter to the oil in circular motions to make a coiled pattern. Fry until golden brown. Meanwhile heat the treacle until small bubbles can be seen erupting out of the liquid. Do not overheat the treacle. Dip the coils in hot treacle after draining the oil and allow it to soak for a few minutes. Take out the pani walalu coils and store in a pot filled with treacle for up to a week.