Step 1:
DOWNLOAD&INSTALL THE FONT "ANJALIOLDLIPI".TO DOWNLOAD PLS CLICK BELOW LINK.http://varamozhi.sourceforge.net/fonts/AnjaliOldLipi.ttf AFTER THIS,DOWNLOADED FONT IS TO BE COPIED IN TO THE FOLDER "Fonts" LOCATED IN THE CONTROL PANEL

Step 2:
Click below link
http://adeign.googlepages.com/ilamozhi.html

After opening this page,"save" it as html page for future use[ie. u can use this even if u are offline].Then type in english and the correspnding malayalam letters will be displayed there..Then copy this malayalam letters..

or you can use this simple techniqu to write in malayalam

http://www.aksharangal.com/index.php

കണിക്കൊന്ന.കോം