01 - Pat the shrimp dry with paper towels. Season with salt and black pepper.
02 - Set up 3 shallow bowls: place the flour in the first, beat the eggs with milk in the second, and combine panko breadcrumbs with shredded coconut in the third.
03 - Dredge each shrimp in flour, shaking off excess. Dip in the egg mixture, then coat thoroughly in the coconut-panko mixture, pressing gently to adhere.
04 - Heat the oil in a deep skillet or saucepan to 350°F.
05 - Working in batches, fry the shrimp for 2–3 minutes per side, until golden brown and cooked through. Remove with a slotted spoon and drain on paper towels.
06 - In a small bowl, mix sweet chili sauce with lime juice and cilantro (if using).
07 - Serve the crispy coconut shrimp hot with the sweet chili dipping sauce.