Set up a breading station with three bowls: one with flour, one with whisked egg and coconut milk, and one with panko breadcrumbs, shredded coconut, salt, paprika, and garlic powder mixed together.
Working one at a time, dip the shrimp into the flour, then coat in egg mixture, then coat in the breadcrumb mixture. Make sure to shake off the excess flour and breadcrumb mixture.
Arrange the shrimp in a single layer in the air fryer basket, so they are not overlapping. Cook two batches if necessary. Make sure the cooking pan is inserted in the oven at the air fry level.
Select Air Fry at 370°F / 190°C and set the time for 12 minutes.
When the oven is preheated, place the air fryer basket on the cooking pan.
When the cooking time is complete, carefully remove the shrimp and place on serving platter. Serve with your favorite dip and enjoy!