At most grocery stores or coffee shops you can buy your beans in bulk and grind them on the premises. I find that this is the best way to get the right grind. I used to have a small coffee grinder but found that I never could get the right balance between too coarse and too fine of a grind. The coffee shop I worked at would grind beans for cold-press on the "metal filter" setting. At home, when we make hot coffee we use a french press so the coffee I use for this recipe at home is ground on the "french press" setting on the grinder at the grocery store.
For those of you grinding at home, below I have posted an up-close pic of perfectly coarse coffee grounds for this recipe. I put the grounds next to some Grape Nuts cereal for a size comparison.
My web version here: http://rabblog.com/
Yes, you can certainly make smaller batches than what my recipe calls for. Or bigger batches for that matter. For 1-2 oz you are looking at about a 1/2c. -1c. of grounds so I'm guessing that you can use 1/2 - 1 liter of water. It depends on how strong you like your coffee. I must confess I don't know a lot about making that small of a batch. Let me know how it turns out.
Thanks Brennn10!