01 - Pat the shrimp completely dry with paper towels to ensure proper breading adhesion. Set aside while preparing the coating stations.
02 - Arrange three shallow bowls: first with flour, salt, and pepper mixed together; second with whisked eggs and milk; third with shredded coconut combined with panko breadcrumbs.
03 - Dredge each shrimp in the flour mixture, shaking off excess. Dip into the egg mixture, then press firmly into the coconut-panko blend to ensure thorough coating.
04 - Pour vegetable oil to a depth of 1 inch in a deep skillet or frying pan. Heat to 350°F, maintaining temperature throughout frying.
05 - Fry shrimp in small batches without crowding the pan. Cook 2 to 3 minutes per side until golden brown and completely cooked through. Internal temperature should reach 145°F.
06 - Remove shrimp with a slotted spoon and transfer to paper towels to drain excess oil. Let rest for 1 minute before serving.
07 - Whisk sweet chili sauce and fresh lime juice in a small bowl until well combined.
08 - Arrange fried coconut shrimp on a serving platter with dipping sauce alongside. Serve hot for optimal texture and flavor.