Step 1: Prepare the Shrimp
Pat shrimp completely dry with paper towels – this is crucial for proper coating adherence. If shrimp are very large, you can butterfly them by cutting along the back (where they were deveined) about ¾ of the way through, then flattening slightly. This isn’t necessary but creates a larger surface area for coating. Leave tails on for easy handling.

Step 2: Set Up Breading Station
Arrange three shallow bowls or pie plates in a row. In the first bowl, whisk together flour, cornstarch, salt, pepper, garlic powder, and paprika. In the second bowl, beat eggs with 2 tablespoons water until well combined and slightly frothy. In the third bowl, mix together shredded coconut and panko breadcrumbs until evenly distributed.

Step 3: Bread the Shrimp
Working with one shrimp at a time, hold it by the tail. Dredge in the seasoned flour mixture, coating completely and shaking off excess. Dip into the egg mixture, letting excess drip off. Finally, press firmly into the coconut-panko mixture, coating both sides thoroughly and pressing gently to help it adhere. The coating should be generous and stick well. Place breaded shrimp on a clean plate or baking sheet. Repeat with all shrimp.

Step 4: Heat the Oil
Pour vegetable oil into a large heavy-bottomed pot or deep skillet to a depth of 2-3 inches. Heat over medium-high heat to 350°F, using a candy/deep-fry thermometer to monitor temperature. Maintaining proper oil temperature is critical for crispy (not greasy) shrimp. The oil is ready when a pinch of coconut mixture sizzles immediately upon contact.

Step 5: Fry the Shrimp (First Batch)
Working in batches of 4-6 shrimp (don’t overcrowd), carefully lower shrimp into hot oil using tongs or a spider strainer. Fry for 2-3 minutes, flipping halfway through, until coating is deep golden brown and shrimp are pink and cooked through. The coconut should be toasted and crispy, not pale.

Step 6: Drain and Keep Warm
Using tongs or slotted spoon, transfer fried shrimp to a wire rack set over a baking sheet lined with paper towels. This allows oil to drip away while keeping shrimp crispy (don’t place directly on paper towels or the bottom will get soggy). If desired, keep finished shrimp warm in a 200°F oven while you fry remaining batches.

Step 7: Fry Remaining Batches
Allow oil to return to 350°F between batches (this takes about 1-2 minutes). Repeat frying process with remaining shrimp, working in batches to avoid overcrowding, which drops oil temperature and creates soggy results.

Step 8: Serve Immediately
Arrange hot coconut shrimp on a serving platter. Garnish with fresh cilantro if desired and serve immediately with sweet chili sauce in small bowls for dipping. Add lime wedges on the side for squeezing over shrimp. These are best enjoyed hot and fresh from the fryer!