Pat the shrimp dry with paper towels and season with salt and black pepper.
Set up three shallow bowls: one with flour, one with beaten eggs, and one with shredded coconut, panko breadcrumbs, paprika, and garlic powder mixed together.
Dip each shrimp into the flour and shake off any excess.
Dip the floured shrimp into the beaten egg.
Press each shrimp gently into the coconut and breadcrumb mixture until evenly coated.
Heat vegetable oil in a large skillet over medium heat.
Carefully add the coated shrimp in small batches and fry for about 2–3 minutes per side, until golden brown and the shrimp are fully cooked.
Transfer the shrimp to a wire rack or paper towels to remove excess oil.
For the dipping sauce, mix mayonnaise, sweet chili sauce, lime juice, honey, and garlic powder in a small bowl until smooth.
Taste the sauce and adjust the sweetness or lime juice if needed.
Serve the Coconut Shrimp hot with the dipping sauce and lime wedges.