Prep the shrimp: Pat the shrimp very dry with paper towels. Dry shrimp cling to the coating better and crisp up nicely.

Set up three bowls: In one, mix flour, salt, pepper, garlic powder, and cornstarch. In the second, whisk eggs and milk. In the third, stir together panko and shredded coconut.

Preheat the air fryer: Set it to 390°F (200°C) for 3–4 minutes. A hot basket helps the coating seal fast for better crunch.

Coat the shrimp: Working in batches, dredge each shrimp in the seasoned flour, shaking off excess. Dip into the egg, then press into the panko-coconut mix until fully coated.

Arrange in the basket: Lightly mist the air fryer basket with oil. Place shrimp in a single layer without crowding. Spray the tops lightly with oil to encourage browning.

Air fry: Cook at 390°F (200°C) for 6–8 minutes, flipping halfway. Shrimp are done when opaque and the coating is golden and crisp. Time can vary by size; large shrimp usually need about 7 minutes total.

Repeat and serve: Cook remaining shrimp in batches. Serve hot with lime wedges and your favorite dipping sauce.