01 - Pat the shrimp completely dry using paper towels to ensure proper coating adherence. Season both sides with salt and black pepper, distributing evenly.
02 - Arrange three shallow bowls in a line. Place flour in the first bowl. Whisk eggs and milk together in the second bowl until well combined. Mix shredded coconut and panko breadcrumbs in the third bowl.
03 - Working with one shrimp at a time, dredge in flour and shake off excess. Dip into the egg mixture, allowing excess to drip off. Press firmly into the coconut-panko mixture, ensuring an even, thick coating adheres to all sides.
04 - Pour vegetable oil into a deep skillet or saucepan. Heat over medium-high heat until the temperature reaches 350°F. Maintain this temperature throughout frying for optimal crispiness.
05 - Add shrimp in small batches to avoid overcrowding and temperature drop. Fry for 2 to 3 minutes per side until deep golden brown and crispy. Transfer to a paper towel-lined plate to drain excess oil.
06 - Combine sweet chili sauce and fresh lime juice in a small mixing bowl. Stir in chopped cilantro if desired. Adjust lime juice to taste for desired tanginess.
07 - Arrange crispy coconut shrimp on a serving platter. Serve hot while the coating remains crunchy, accompanied by the sweet chili sauce for dipping.