Prep the shrimp: Pat shrimp very dry with paper towels.
Dry shrimp grab the coating better and crisp up more evenly.
Season the flour: In a shallow bowl, whisk together flour, salt, pepper, garlic powder, and paprika or cayenne if using.
Beat the eggs: In a second bowl, beat the eggs until smooth.
Mix the crust: In a third bowl, combine panko, shredded coconut, and sugar if using. Stir well so the coconut distributes evenly.
Dredge: Work in batches. Toss shrimp in the seasoned flour, shaking off excess.
Dip each into egg, letting extra drip off. Press firmly into the coconut-panko mixture so it adheres all over.
Preheat the air fryer: Set to 375°F (190°C) for 3 minutes. Lightly spray the basket with oil.
Load the basket: Arrange shrimp in a single layer without crowding.
Leave a little space between each piece for airflow.
Oil lightly: Spray the tops of the coated shrimp with a light, even coat of oil. This is key for even browning.
Cook: Air fry at 375°F (190°C) for 6–8 minutes, flipping once halfway through. Shrimp are done when the coating is golden and the shrimp are opaque and just firm.
Finish: Sprinkle with a pinch of salt while hot. Serve right away with lime wedges and your favorite dipping sauce.