Heat the vegetable oil to around 350 degrees Fahrenheit in a deep-frying pan or Dutch oven. Add enough oil to the pot so that the oil is about 1/4" to 1/2" inches deep. (Alternatively, you can fry these in an air fryer, see instructions below.)
Whisk the coconut and breadcrumbs together in a bowl.
In a separate bowl, whisk the flour, onion powder, garlic powder, paprika and salt together.
In a separate bowl, whisk together the egg and milk.
Once the oil is hot, dip one shrimp at a time into the flour mixture, then the egg mixture, then press on the coconut, then fry. Add no more than 8 shrimp at a time to the pan to keep it hot. Fry on each side for about 1 minute, or until they turn a light golden color.
Remove and drain the excess oil over a plate fitted with a paper towel, or over a cookie drying rack.
To make the sauce, mix the garlic and chili sauce together. Microwave for 2 minutes, stirring half-way through. Remove and let cool for a few minutes before stirring in the lime juice and cilantro.