  Embedded systems interaction with environment inherently complicates
understanding of requirements and their correct implementation. However,
product uncertainty is highest during early stages of development. Design
verification is an essential step in the development of any system, especially
for Embedded System. This paper introduces a novel adaptive design methodology,
which incorporates step-wise prototyping and verification. With each adaptive
step product-realization level is enhanced while decreasing the level of
product uncertainty, thereby reducing the overall costs. The back-bone of this
frame-work is the development of Domain Specific Operational (DOP) Model and
the associated Verification Instrumentation for Test and Evaluation, developed
based on the DOP model. Together they generate functionally valid test-sequence
for carrying out prototype evaluation. With the help of a case study 'Multimode
Detection Subsystem' the application of this method is sketched. The design
methodologies can be compared by defining and computing a generic performance
criterion like Average design-cycle Risk. For the case study, by computing
Average design-cycle Risk, it is shown that the adaptive method reduces the
product development risk for a small increase in the total design cycle time.
