I have not done too much R & D, but this should help. Get "Nudi" from http://www.bangaloreit.com/NudiWebSetup/Nudi/Nudi4.0setup.zip and install it in your machine. Just installing nudi fonts(and not the entire software) might work, but I recommend installing the software itself, as 8 MB disk space is not huge and you can learn typing in kannada as well. Believe me, typing in Kannada is not as difficult as it initially seems!
Visit http://krishnamurthyu.blogspot.com for help if you are planning to open a blog in Kannada.
There are a few things that are not working fine.
1) In the "Previous Posts" section on the right, the names of the posts are not coming up.
2) I tried to comment on a post in Kannada, but some junk characters are coming up.
If you notice any other issues or get a solution to any, please tell me.