Here are instructions for doing a loop-back test, which I used to send Serial data to Arduino Uno and Read them back at the same time on my terminal:
https://forum.arduino.cc/index.php?topic=73748.0
My question is, why does RESET have to be connected to ground? Does the Tx/Rx lines not connect to the D0 and D1 pins at all times?
I thought RESET is for resetting the MCU registers as well as putting AVR in ICSP programming mode. What does RESET do in this case?