Make sure the shrimp are thoroughly thawed, if previously frozen, then pat dry with paper towels.
Place ½ cup of flour in a bowl or shallow plate for dredging the shrimp. Season with a little salt and pepper.
In a second bowl or plate, combine another ½ cup of flour with the baking powder, garlic powder, salt, and cayenne pepper. Whisk in the beaten egg and coconut milk to create a medium-thick batter, similar to pancake batter.
Combine the shredded coconut and Panko bread crumbs in a third bowl or plate.
Dredge the shrimp first in the flour mixture, shaking off any excess, then in the coconut milk batter, then in the coconut/breadcrumb mixture.
Transfer the breaded shrimp to a separate plate or baking sheet. Refrigerate for 30 minutes or stick in the freezer for 10-15 minutes. This step allows the coating to set up a bit and keeps the shrimp cold so it cooked evenly when frying.
Heat a large skillet over medium heat with enough oil to cover the bottom of the pan about 1-2 inches deep. Heat until the oil reaches 375 degrees F. I find it helpful to use a thermometer to keep the oil at a constant temperature.
Cook the shrimp for 2-3 minutes on each side until golden brown and cooked through. Work in batches and don't crowd the pan.
Serve with your favorite dipping sauce and lime wedges for squeezing over the shrimp.