Preheat your oven to 400°F and line a large baking sheet with parchment paper for easy cleanup.

In a shallow pan set over medium heat, add the coconut oil, Panko breadcrumbs, and shredded coconut. Stir the mixture continuously for 3 to 4 minutes, toasting until evenly golden and fragrant. Once toasted, stir in the garlic powder, paprika, salt, and black pepper. Mix thoroughly to distribute the seasonings. Transfer this toasted coating to a shallow plate and allow it to cool to room temperature.

To prepare the shrimp, use kitchen scissors to carefully slice along the back to remove the vein. Peel the shells off but keep the tails intact for a crisp presentation. Rinse each shrimp under cool water to remove any residue, then pat them completely dry with paper towels—this step ensures the coating sticks properly.

Set up a dredging station with three shallow plates: one with flour, one with the beaten eggs, and one with the cooled coconut breadcrumb mixture. Take each shrimp and dredge it first in flour, shaking off the excess. Next, dip it into the egg until well coated, then press it firmly into the coconut breadcrumb mixture to ensure an even, generous crust.

Arrange the coated shrimp on the prepared baking sheet in a single layer. For even crisping, make sure the shrimp are not touching. Bake for 15 minutes, flipping each shrimp halfway through to achieve a golden brown finish on both sides.

While the shrimp bake, prepare the dipping sauce. In a small bowl, stir together the mayonnaise and hot sauce until smooth and creamy.

Serve the coconut shrimp hot and crispy, paired with the spicy mayo sauce for dipping.