Today I wanted to write some post in blogger.com . So I searched for a good english to malayalam translation tool and stumbled upon
Google Indic Transliteration . Its awesome and the best Transliteration tool I have ever used.
Check this out here: http://www.google.com/transliterate/indic/Malayalam# .
Tip: Type a word and hit space to get it in Malayalam.
Complete help: http://www.google.com/transliterate/indic/about_ml.html