Heat 1 - 2 tsp oil / ghee in a frying pan and then add onion pieces into it.
Add red chilli powder and salt and stir it for 2 - 3 minutes.
After 5 minutes,put off the stove and keep the mix aside (please do not fry the onion only heat it well).
Heat the dosa making stone. Apply some oil on it and then put 1 or 2 ladles of the idly batter and spread it in round shape as shown below.
Also apply 1-2 tsp of oil/ghee on it.
Apply the heated onion pieces on the surface of the spreaded batter.
Press the onion pieces smoothly on the oothappam with a spoon or a spatula.
After about 2 - 3 minutes turn the oothappam to other side and then take it out after another 1 - 2 minutes.
Onion oothappam is ready. This can serve with coconut / onion chutney or sambar.