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Step 1: Prepare the Coconut Coating. In a shallow bowl, combine the sweetened coconut flakes and plain panko breadcrumbs. Stir everything together until the mixture is evenly blended.
Step 2: Season the Flour. Take another shallow bowl and add the all-purpose flour. Mix in the salt, black pepper, garlic powder, paprika, and onion powder. Stir well so the seasonings are evenly distributed throughout the flour.
Step 3: Make the Egg Wash. In a separate bowl, crack the eggs and add the water. Whisk until the mixture is smooth and fully combined.
Step 4: Bread the Shrimp. Dip each shrimp first into the seasoned flour, then into the egg wash, and finally press into the coconut and panko mixture.
Step 5: Heat the Oil. Pour peanut oil into a deep skillet or frying pan and heat to 350°F (175°C).
Step 6: Fry the Shrimp. Carefully place the breaded shrimp into the hot oil in batches, frying for about 2 to 3 minutes per side until golden brown.
Step 7: Drain and Serve. Transfer the shrimp to a plate lined with paper towels to drain excess oil and serve hot with cocktail sauce.