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In a medium bowl whisk together the eggs, milk, and sriracha sauce. Set aside.
In a medium, shallow dish combine the coconut, panko, salt, pepper, and cayenne.
Dip the chicken strips in the egg mixture to coat, and then into the coconut mixture, coating completely. Transfer the chicken strips onto a plate and repeat the process with all the strips.
Turn the oven on to the lowest (or warm) setting, this is usually 160°F. Line a large baking sheet with paper towels and set aside.
In 10- inch frying pan fill the pan ⅓- inch deep with vegetable oil. Heat the oil over medium heat until it reaches a temperature of 375°, or until small bubbles form when the back of a wooden spoon is placed in the oil. In batches place the chicken in the pan, careful not to crowd the pan. Fry 3-4 minutes on each side until golden brown.
When the chicken is done, transfer to the paper towel-lined baking sheet and place in the oven to stay warm. Repeat with all the chicken.
Serve warm with dipping sauce, if desired.