From My Dad's Treasury

Here’s a Malayalam one which my father would recite to our delight:

Enthu? ..................... What?
Chaanthu .................... Chaanthu (a thick paste used to draw a bindi)
Chaantu naarum .............. Chaanthu smells
Naaruna Poovu ............... a flower smells (too)
Poovu choodum ............... a flower is placed on the head(in the hair)
Chooduna Kuda ............... an umbrella is placed on the head (as well)
Kuda kettum ................. an umbrella is bound and fastened
Kettuna Veili ............... a fence is bound and fastened (likewise)
Vaeli polikkum .............. a fence gets trampled on
Polikkana paiyyu ............ a cow tramples
Paiyyu kuthum ............... a cow strikes (butts) with horns
Kuthuna thelu ............... a scorpion strikes
Thelu kadayum ............... a scorpion (sting) chiurns (the flesh)
Kadayana moru ............... buttermilk is churned
Moru pulikkum ............... buttermilk is sour
Pulikkana pulinga ........... and sour is the tamarind
Pulinga thoongum ............ tamarinds hang (from trees)
Thoonguna aaval ............. so hangs the bat
Aaval prakkum ............... the bat flies
Parakkana kaakka ............ so flies the crow
Kaakka kothum ............... the crow pecks
Kothuna malsyam ............. so pecks the fish
Malsyam oadum ............... the fish runs (swims) in water
Oaduna vellam .............. water runs
Vellam kaanum .............. water reflects
Kaanuna kannaadi ............ similarly does the mirror reflect
Kannadi vaarkum ............. a mirror is baked
Vaarkuna appam .............. an appam is baked too
Appam thinnolu .............. now eat this appam

The play of words is too complicated to transcribe and still retain the magic :(

Another one goes like this:
Do note the shock value of the last line.

Achuthan uchakkappamkattu..........Achuthan stole an appam at noon
MaaraarRaaman kandupidichu ........The drummer Raaman found out
Chendakolontonnukoduthu ...........He beat him with the drumstick
Chenda marinjukinattil veenu. .....The drum tumbled and fell into the well

Kumblkottan munggithappi........... The *Kumblakottan dived and searched
Minnaaminunga velicham kaatti ..... The glow worm showed him light
Aattumkutty paattumpaadi .......... The young goat sang a song
Kozhikutty naamam chelli .......... The chick chanted a prayer
Pashu pullaattivaaluthinnu ....... The cow shook the grass and ate her tail.

*Kumblakottan is a smelly insect; you never see it but your nose does.