What is the correct word for "happening every minute"? How do you pronounce it?
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The word "minutely" does exist, but in the meaning "every minute" it's archaic (see e.g. Merriam-Webster or The American Heritage Dictionary of the English Language). The modern meaning is twofold: "in great detail, in a minute manner, with attention to detail" or "into tiny pieces".
What you are looking for is "minute by minute", "once a minute",
"Every minute" or "once a minute" is correct. There isn't a single word for this. RegDwight points out "minute by minute" and "on a minute-by-minute basis", but note that "on a minute-by-minute basis" means something different from "every minute" - "he updates his blog on a minute-by-minute basis" - he updates his blog very frequently, perhaps not actually every minute - as opposed to "he updates his blog every minute" - he actually updates his blog every single minute.