01 - Pat shrimp dry with paper towels, then season evenly with salt and black pepper.
02 - Place flour in the first shallow bowl. In the second, whisk eggs and milk together. Combine panko breadcrumbs and shredded coconut in the third bowl.
03 - Coat each shrimp first in flour, shaking off excess, then dip in the egg mixture, and finally press into the panko-coconut blend until fully covered.
04 - Heat vegetable oil in a deep skillet or saucepan to 350°F (180°C).
05 - Fry shrimp in batches for 2 to 3 minutes each until golden brown and crisp, avoiding overcrowding.
06 - Remove shrimp using a slotted spoon and place on paper towels to drain.
07 - Combine Thai sweet chili sauce, lime juice, and cilantro in a small bowl, mixing well.
08 - Serve crispy coconut shrimp immediately alongside the sweet chili dip.