Rinse shrimp and soak in milk for 10-15 minutes. While shrimp is soaking, begin heating oil. Fill a pot with 3 inches of vegetable oil and heat until about 340-360 degrees.
Gather three mixing bowls. In one bowl, add flour, red pepper flakes, onion powder, garlic powder, salt, and pepper. In the second bowl, add eggs and whisk with a fork. In the third bowl, combine panko and sweetened coconut flakes.
Take shrimp and add it to the flour mixture, ensuring that it is coated on both sides. Then submerge in the egg, then dredge in the panko/coconut flakes mixture. Add to a cooling rack and repeat the process. Freeze for 20 minutes.
Fry shrimp, 3-4 at a time, until golden brown, about 3-5 minutes. Remove from oil and place on a cooling rack or paper towel.
Add to a serving dish and drizzle honey on top. Gently toss to coat.
To make the sweet dipping sauce, combine all ingredients in a food processor and blend until smooth.
Notes
Do not allow oil to become too hot or else the coconut flakes will char.
If sensitive to spice, reduce the amount of red pepper flakes.
For the sweet dipping sauce, do not use coconut milk. It is important to use canned coconut cream as this is thicker and adds creaminess and texture to the sauce.