How to tie panchakacham (dhotee)

The pancha kachcham (panja kacham or kacham) is a form of wearing the dhoti, typically worn by grihasthas (men who are married) on special occasions such as Pujas or festivals and some orthodox persons daily, during their routine Puja times. It is typically a dhoti of eight to ten square yards (according to the height and girth of the person) worn in a specific way. The steps below describe the way as according to Iyers (South Indian Brahmins).

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1. Main and important thing is that pancha kachcham should be worn by married men and not a bachelor (It's not like a jeans or other dresses)
2. Open the 8 or 9 hands (4 - 4.5 yards )dhoti completely.
3. Hold the dhoti such that you are right down the center of the dhoti (lengthwise). Both the ends should be free and you should be holding the dhoti such that there is enough dhoti to go around you just once.
4. Wrap it around you once keeping the wrap a little tight at the stomach portion
5. Fold the dhoti a few times so that the it is held firmly at your hip.
6. Take the end that is on top (typically should be the one to your left); Starting from the end, slowly make folds of about 2 inches each (kosuval). 
7. Insert the folds into the wrap around the hip
8. Take the breadth portion of the top fold and starting from the end (so that the border coloring is visible), make similar fold
9. Insert this second set of folds on top of the previous one
10. Take the other free end of the dhoti, starting breadthwise, make similar folds.
11. Run this between your legs and bring it behind you
12. Ensure that the folds are not twisted.
13. Insert the new set of folds behind your back

For step by step pictures - read this.