Prepare the Shrimp and Coating:

1. Preheat the Air Fryer: Preheat your air fryer to 400°F (200°C) for 5 minutes. This ensures that the shrimp cooks evenly and crisps up beautifully.
2. Prepare the Flour Dredge: In a shallow bowl, place the all-purpose flour. Season the flour with a pinch of salt and pepper, then set aside.
3. Make the Egg Wash: In another shallow bowl, whisk together the eggs and water. This egg wash will help the coconut and breadcrumbs stick to the shrimp.
4. Combine the Coconut and Breadcrumbs: In a third shallow bowl, mix together the shredded coconut, panko breadcrumbs (if using), garlic powder, onion powder, paprika, salt, and pepper. Stir until everything is evenly combined.

Coat the Shrimp:

5. Dredge the Shrimp: Working one shrimp at a time, dredge the shrimp in the flour mixture, making sure it’s fully coated. Shake off any excess flour.
6. Dip in the Egg Wash: Next, dip the floured shrimp into the egg wash, ensuring it’s fully covered.
7. Coat with Coconut Mixture: Finally, coat the shrimp in the coconut-breadcrumb mixture, pressing gently to ensure the coating sticks well. Place the coated shrimp on a plate or tray, ready for the air fryer.

Air Fry the Shrimp:

8. Spray the Air Fryer Basket: Lightly spray the air fryer basket with cooking spray to prevent the shrimp from sticking and help achieve a crispy finish.
9. Arrange the Shrimp in the Air Fryer: Carefully place the shrimp in the preheated air fryer basket in a single layer. Avoid overcrowding to ensure even cooking and crisping.
10. Cook the Shrimp: Air fry the shrimp at 400°F (200°C) for 8-10 minutes, flipping halfway through the cooking time. The shrimp should be golden brown and crispy on the outside, with an internal temperature of 120°F when fully cooked.

Serve:

11. Serve Immediately: Once the shrimp are cooked to perfection, remove them from the air fryer and serve with lime wedges on the side. You can also offer dipping sauces like sweet chili sauce, coconut curry, or a tangy cocktail sauce.