01 - Pat shrimp dry with paper towels and season evenly with salt and black pepper.
02 - Arrange three shallow bowls: fill the first with flour, beat eggs and water in the second, and combine shredded coconut with panko breadcrumbs in the third.
03 - Dredge each shrimp in flour, shake off excess, dip into the egg mixture, then press into the coconut-panko blend to coat thoroughly.
04 - Warm vegetable oil in a deep skillet or saucepan to 350°F.
05 - Fry shrimp in batches for 1–2 minutes per side until golden brown and crispy, avoiding overcrowding. Remove with slotted spoon and drain on paper towels.
06 - Combine sweet chili sauce, lime juice, and cilantro if using, stirring well.
07 - Present the crispy coconut shrimp hot alongside the sweet chili sauce.