Add shrimp, flour, seafood seasoning, salt and pepper to a large Ziploc bag. Seal and shake to evenly coat.
In a shallow bowl, beat together egg with coconut milk.
In a separate shallow bowl mix together coconut and panko bread crumbs.
Dip flour coated shrimp into egg, then into coconut breadcrumbs. Press firmly onto each shrimp. Repeat until all are coated, placing onto a wax paper lined pan. (Have nearby a sheet pan lined with wax paper.) Freeze for 20 minutes.
To Fry: Heat 2 inches of oil in a Dutch oven fitted with a fry thermometer. Heat oil to 350°F.
Remove shrimp from freezer. Cook shrimp for 2-3 minutes per site to evenly brown. Cook in batches to avoid overcrowding the pot. Remove from oil using a stainless steel spider or slotted spoon to a paper towel lined platter to drain.
Serve immediately with Asian sweet chili sauce for dipping.