This problem can be solve with FEM and FDM as well. First we show FDM code since `pdetoode` is implementation of FDM. We copy this function as well from [here][1] (thanks to xzczd)   

    Clear[fdd, pdetoode, tooderule, pdetoae, diffbc, rebuild]
    fdd[{}, grid_, value_, order_, periodic_] := value;
    fdd[a__] := NDSolve`FiniteDifferenceDerivative@a;
    
    pdetoode[funcvalue_List, rest__] := 
      pdetoode[(Alternatives @@ Head /@ funcvalue) @@ funcvalue[[1]], 
       rest];
    pdetoode[{func__}[var__], rest__] := 
      pdetoode[Alternatives[func][var], rest];
    pdetoode[front__, grid_?VectorQ, o_Integer, periodic_ : False] := 
      pdetoode[front, {grid}, o, periodic];
    
    pdetoode[func_[var__], time_, {grid : {__} ..}, o_Integer, 
       periodic : True | False | {(True | False) ..} : False] := 
      With[{pos = Position[{var}, time][[1, 1]]}, 
       With[{bound = #[[{1, -1}]] & /@ {grid}, 
         pat = Repeated[_, {pos - 1}], 
         spacevar = Alternatives @@ Delete[{var}, pos]}, 
        With[{coordtoindex = 
           Function[coord, 
            MapThread[
             Piecewise[{{1, PossibleZeroQ[# - #2[[1]]]}, {-1, 
                 PossibleZeroQ[# - #2[[-1]]]}}, All] &, {coord, bound}]]},
          tooderule@
          Flatten@{((u : func) | 
                Derivative[dx1 : pat, dt_, dx2___][(u : func)])[x1 : pat, 
              t_, x2___] :> (Sow@coordtoindex@{x1, x2};
              
              fdd[{dx1, dx2}, {grid}, 
               Outer[Derivative[dt][u@##]@t &, grid], 
               "DifferenceOrder" -> o, 
               PeriodicInterpolation -> periodic]), 
            inde : spacevar :> 
             With[{i = Position[spacevar, inde][[1, 1]]}, 
              Outer[Slot@i &, grid]]}]]];
    
    tooderule[rule_][pde_List] := tooderule[rule] /@ pde;
    tooderule[rule_]@Equal[a_, b_] := 
      Equal[tooderule[rule][a - b], 0] //. 
       eqn : HoldPattern@Equal[_, _] :> Thread@eqn;
    tooderule[rule_][expr_] := #[[Sequence @@ #2[[1, 1]]]] & @@ 
      Reap[expr /. rule]
    
    pdetoae[funcvalue_List, rest__] := 
      pdetoae[(Alternatives @@ Head /@ funcvalue) @@ funcvalue[[1]], rest];
    pdetoae[{func__}[var__], rest__] := 
      pdetoae[Alternatives[func][var], rest];
    
    pdetoae[func_[var__], rest__] := 
     Module[{t}, 
      Function[
         pde, #[pde /. {Derivative[d__][u : func][inde__] :> 
              Derivative[d, 0][u][inde, t], (u : func)[inde__] :> 
              u[inde, t]}] /. (u : func)[i__][t] :> u[i]] &@
       pdetoode[func[var, t], t, rest]]
    
    diffbc[rst__][a : _List | _Equal] := diffbc[rst] /@ a
    diffbc[dvar : {t_, order_} | (t_) .., sf_ : 0][a_] /; sf =!= t := 
     sf a + D[a, dvar]
    
    rebuild[funcarray_, grid_?VectorQ, timeposition_ : 1] := 
     rebuild[funcarray, {grid}, timeposition]
    
    rebuild[funcarray_, grid_, timeposition_?Negative] := 
     rebuild[funcarray, grid, Range[Length@grid + 1][[timeposition]]]
    
    rebuild[funcarray_, grid_, timeposition_ : 1] /; 
      Dimensions@funcarray === Length /@ grid := 
     With[{depth = Length@grid}, 
      ListInterpolation[
         Transpose[
          Map[Developer`ToPackedArray@#["ValuesOnGrid"] &, #, {depth}], 
          Append[Delete[Range[depth + 1], timeposition], timeposition]], 
         Insert[grid, Flatten[#][[1]]["Coordinates"][[1]], 
          timeposition]] &@funcarray]

    (*Definitions*)(*Constants*)\[Mu] = 
      2.75*10^-6 (*mN mm^-2 s*);(*Viscosity of water*)
    \[Gamma] = 0.072(*mN mm^-1*);(*Air-water surface tension*)
    \[Beta] = 1(*mm s^-1*);(*Slip constant*)
    
    (*Grid specification*)
    difforder = 4;
    lb = 1/100; rb = 1; points = 20;
    grid = Array[# &, points, {lb, rb}];
    
    unitStepExpand = Simplify`PWToUnitStep@PiecewiseExpand@# &;
    
    With[{h = h[r/R[t], t], q = q[r/R[t], t], p = p[r/R[t], t], 
      R = R[t]},(*Equations neglecting evaporation*)
     EqnP = Simplify[
        p == \[Gamma] (-D[h, r, r] - 
            unitStepExpand@If[x < 1/20, D[h, r, r], D[h, r]/r])] /. 
       r -> x R;
     EqnQ = Simplify[q == (r h^3)/(3 \[Mu]) (-D[p, r])] /. r -> x R;
     EqnC = Simplify[D[h, t] == -(1/r) D[q, r]] /. r -> x R;
     EqnR = D[R, t] == \[Beta] (-D[h, r]^3 - 1) /. r -> R;]
    
    (*Boundary conditions*)
    dr = R[t] lb;
    
    EqnBC1 = {D[r h[lb, t] dr, t] + r q[lb, t] == 0} /. r -> lb R[t];
    EqnBC2 = {Derivative[1, 0][h][lb, t] == 0};
    EqnBC3 = {h[rb, t] == 0};
    
    (*Initial conditions*)
    EqnIC = {h[x, 0] == (1 - x^2)};
    
    (*Equation Discretisation*)
    removeredundant = #[[3 ;; -2]] &;
    
    tfunc = pdetoode[{p, q, h}[x, t], t, grid, difforder];
    odemid = Map[tfunc, {EqnP, EqnQ}, {2}];
    odeC = Block[{p, q}, Set @@@ odemid; tfunc@EqnC] // removeredundant;
    
    odeBC1 = Block[{p, q}, Set @@@ odemid; tfunc@EqnBC1];
    odeBC2 = With[{sf = 100}, diffbc[t, sf]@EqnBC2 // tfunc];
    odeBC3 = With[{sf = 100}, diffbc[t, sf]@EqnBC3 // tfunc];
    
    odeR = Block[{p, q}, Set @@@ odemid; tfunc@EqnR];
    
    odeIC = Append[EqnIC // tfunc, R[0] == 10];

FDM solution of the Laplace equation in general form

    delx = Differences[grid][[1]]; 
    XYgrid[dom_List, pts_List] := 
     MapThread[
      N@Range[Sequence @@ #1, Abs[Subtract @@ #1]/#2] &, {dom, pts - 1}];
    BoundaryIndex[xgridlen_, ygridlen_] := 
      Module[{tmp, left, right, bot, top}, 
       tmp = Table[(n - 1) ygridlen + Range[1, ygridlen], {n, 1, 
          xgridlen}]; {left, right} = tmp[[{1, -1}]]; {bot, top} = 
        Transpose[{First[#], Last[#]} & /@ tmp]; {top, right[[2 ;; -2]], 
        bot, left[[2 ;; -2]]}];
    FDMat[deriv_, xygrid_, difforder_] := 
     Map[NDSolve`FiniteDifferenceDerivative[#, xygrid, 
         "DifferenceOrder" -> difforder]["DifferentiationMatrix"] &, deriv]
    {domain, pts, 
       difforder} = {{{lb, 5 points delx + lb }, {0, H}}, {5 points + 1, 
        20}, 4};
    xygrid = XYgrid[domain, pts]; {nx, ny} = 
     Map[Length, xygrid]; {top, right, bot, left} = 
     BoundaryIndex[nx, ny]; {dx, dy, dx2, dy2} = 
     FDMat[{{1, 0}, {0, 1}, {2, 0}, {0, 2}}, xygrid, 
      difforder]; boundaries = Join[top, right, bot, left]; sgrid = 
     Flatten[Outer[List, Sequence @@ xygrid], 1]; bot1 = 
     Take[bot, points]; bot2 = Complement[bot, bot1];
    u = Table[uu[i], {i, nx ny}]; X = 
     sgrid[[All, 1]]; eqs = (dx2 + dy2) . u + (dx . u)/X; 
    eqs[[left]] = (dx . u)[[left]]; eqs[[right]] = u[[right]]; 
    eqs[[top]] = u[[top]];
    varh = h[#][t] & /@ grid; eqs[[bot1]] = u[[bot1]] - varh; 
    eqs[[bot2]] = (dy . u)[[bot2]];
    
    {vec, mat} = CoefficientArrays[eqs, u];
    
    inv = Inverse[mat // N];
    
    U = -inv . vec;
    
    ju = (dy . U)[[bot1]]; ju1 = (ju // removeredundant)/R[t];
    
    odeC1 = Thread[odeC[[All, 1]] == ju1];
Please note, that `ju` is the evaporation rate expressed as a function of `h[t]` on the `grid`. We use `odeC1` to compute solution as follows

    Monitor[sollst = 
       NDSolveValue[{odeC1, odeR, odeBC1, odeBC2, odeBC3, 
         odeIC}, {h /@ grid, R}, {t, 0, 6}, 
        EvaluationMonitor :> (time = t), 
        Method -> {"EquationSimplification" -> "Solve"}], time];
    
    
    {hsol} = rebuild[#, grid, 2] & /@ {sollst[[1]]};
    Rsol = sollst[[2]];
Animation

    frames = 
      Table[Plot[hsol[Abs[r]/Rsol[t], t], {r, 1/10, Rsol[t]}, 
        PlotRange -> {{0, 10}, {0, 1}}], {t, 0, 6, .05}];

[![Figure 1][2]][2] 

**Update 1. FEM code.**
Using FEM we can construct function analogue to `ju` as follows

    Needs["NDSolve`FEM`"]
    L = 5;
    H = 5;
    mesh = ToElementMesh[Rectangle[{10^-2, 0}, {L, H}], 
       MaxCellMeasure -> .01];
    jF[h_, g_] := 
     Module[{c, x, y, csol, hh}, hh = Interpolation[Transpose[{g, h}]];
      csol = 
       NDSolveValue[{1/x  D[x  Derivative[1, 0][c][x, y], x] + 
           Derivative[0, 2][c][x, y] == 0, 
         DirichletCondition[c[x, y] == hh[x], x <= 1 && y == 0], 
         DirichletCondition[c[x, y] == 0, y == H], 
         DirichletCondition[c[x, y] == 0, x == L]}, 
        c, {x, y} \[Element] mesh]; -Derivative[0, 1][csol][#, 0] & /@ g]
  
Now we can compare FEM and FDM code using numerical solution shown above

    var = Join[h /@ grid, {R}]; sol = 
     NDSolve[{odeC1, odeR, odeBC1, odeBC2, odeBC3, odeIC}, var, {t, 0, 6},
       Method -> {"EquationSimplification" -> "Solve"}];
    
    Table[ListLinePlot[{-ju /. sol[[1]], jF[varh /. sol[[1]], grid]}, 
      PlotStyle -> {{Blue}, {Red, Dashed}}, PlotLabel -> Row[{"t = ", t}],
       PlotLegends -> {"FDM", "FEM"}], {t, 0, 6, .5}]
[![Figure 2][3]][3]      

As we can see from picture above there are discrepancies FDM and FEM function due to difference in option `DifferenceOrder` which is 4 for FDM differentiation matrices and 2 for FEM matrices.  

  [1]: https://mathematica.stackexchange.com/questions/127980/dynamic-euler-bernoulli-beam-equation/127997#127997
  [2]: https://i.sstatic.net/j9Ve5mFd.gif
  [3]: https://i.sstatic.net/9efWnlKN.png