01 - Pat shrimp dry with paper towels to remove excess moisture for better coating adherence.
02 - In first shallow bowl, combine flour, salt, and pepper. In second bowl, whisk eggs and milk until blended. In third bowl, mix shredded coconut with panko breadcrumbs.
03 - Dredge each shrimp in flour mixture, shaking off excess. Dip into egg wash, allowing excess to drip off. Press firmly into coconut-panko mixture, ensuring complete coverage on all sides.
04 - Pour 1 inch vegetable oil into deep skillet or frying pan. Heat to 350°F, maintaining temperature throughout frying process.
05 - Fry shrimp in batches without overcrowding, 2 to 3 minutes per side until golden brown and cooked through. Internal temperature should reach 145°F.
06 - Remove shrimp with slotted spoon, drain on paper towels to absorb excess oil. Let rest 2 minutes before serving.
07 - Whisk sweet chili sauce with lime juice until smooth. Serve alongside warm coconut shrimp.