01 - Pat the shrimp completely dry with paper towels to ensure the coating adheres properly. Set aside while preparing the breading station.
02 - Arrange three shallow bowls: first bowl with flour mixed with salt and pepper, second bowl with whisked eggs and milk, third bowl with shredded coconut and panko breadcrumbs combined.
03 - Dredge each shrimp in the flour mixture, shaking off excess. Dip into the egg mixture, allowing excess to drip off. Press firmly into the coconut-panko mixture to coat thoroughly on all sides.
04 - Pour vegetable oil to a depth of 1 inch in a deep skillet or frying pan. Heat to 350°F over medium-high heat. The oil is ready when a small piece of coating sizzles immediately upon contact.
05 - Fry shrimp in batches without overcrowding the pan, cooking 2-3 minutes per side until golden brown and cooked through. Maintain oil temperature between 340-350°F for optimal crisping.
06 - Transfer cooked shrimp to a paper towel-lined plate or wire rack to drain excess oil. Let rest for 2 minutes to maintain crispiness.
07 - Whisk together sweet chili sauce and fresh lime juice in a small bowl until well combined. Adjust lime juice to taste.
08 - Arrange fried coconut shrimp on a serving platter with the dipping sauce alongside. Serve immediately while hot and crispy for best texture.