01 - Pat the shrimp dry with paper towels. Season evenly with salt and black pepper, ensuring thorough coverage.
02 - Arrange three shallow bowls: place flour in the first bowl; whisk eggs and milk together in the second bowl; combine shredded coconut and panko breadcrumbs in the third bowl.
03 - Dredge each shrimp in flour, shaking off excess. Dip into the egg mixture, then coat thoroughly in the coconut-panko mixture, pressing gently to ensure the coating adheres properly.
04 - Pour vegetable oil into a deep skillet or saucepan. Heat over medium-high heat until the temperature reaches 350°F.
05 - Fry shrimp in batches for 2 to 3 minutes per side, or until golden brown and crispy. Remove using a slotted spoon and drain on a paper towel-lined plate.
06 - In a small mixing bowl, combine sweet chili sauce with fresh lime juice. Add chopped cilantro if desired and stir until well incorporated.
07 - Arrange the crispy coconut shrimp on a serving platter. Serve immediately while hot, accompanied by the sweet chili dipping sauce on the side.