We discuss continuous observation of the momentum of a single atom by employing the high velocity sensitivity of the index of refraction in a driven $Lambda$-system based on electromagnetically induced transparency (EIT). In the ideal limit of unit collection efficiency this provides a quantum limited measurement with minimal backaction on the atomic motion. A feedback loop, which drives the atom with a force proportional to measured signal, provides a cooling mechanism for the atomic motion. We derive the master equation which describes the feedback cooling and show that in the Lamb-Dicke limit the steady state energies are close to the ground state, limited only by the photon collection efficiency. Outside of the Lamb-Dicke regime the predicted temperatures are well below the Doppler limit.
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