For the Coconut Shrimp
Pat shrimp dry. Set aside.
In a plastic zipper bag, mix the cornstarch, salt, pepper, and cayenne pepper.
In a small bowl, whisk the egg whites and water together until it is very frothy.
In another plastic zipper bag, mix the unsweetened coconut flakes and panko bread crumbs.
Prepare your breading station. Starting from left to right: shrimp, cornstarch mix, egg whites, coconut-panko mix, and a sheet tray with a cooling rack on top.
Working in small batches of 4 - 6 shrimp at a time, begin the breading process.
You will be working left to right. Place the shrimp in the cornstarch mix, zip the plastic bag, and shake until the shrimp are completely covered. Using your hands, shake any excess off.
Then lightly dredge the shrimp in the egg whites, and using the side of the bowl, lightly scrape any excess. (Too much egg whites on the shrimp and the breading will fall off when fried).
Place the coated shrimp into the coconut-panko mix, zip the plastic bag, and softly shake until the shrimp are completely coated. If needed, gently press some of the coconut-panko on the shrimp to ensure it sticks.
Lastly, transfer the coated shrimp on the cooling rack with the sheet tray and repeat the process until all the shrimp are breaded. Fry the shrimp immediately or refrigerate until ready to fry.
For Cooking in Oil
In a large deep-sided saute pan, add enough vegetable oil until it reaches a depth of 2 inches and let it heat to about 350ºF.
Once the oil is ready, add 6 - 8 shrimp. You will know when the oil is ready when the oil starts bubbling around the shrimp right away. Do not overcrowd the saute pan with shrimp or the oil temperature will drop too low. Cook the shrimp for 2 minutes per side or until the shrimp curl up into a "C" shape and are golden brown.
Remove the shrimp with a mesh strainer or slotted spoon and place it on a plate with a paper towel. Repeat the process until finished.
For Cooking in an Air Fryer
Preheat the air fryer 380ºF.
Lightly spray vegetable oil on the air fryer basket, place shrimp in a single layer, and spray vegetable oil on the shrimp. Close the air fryer basket and cook for 4 minutes.
After 4 minutes, open the air fryer basket, flip the shrimp over, and spray the shrimp again. Close the air fryer basket and cook for 4 more minutes or until golden brown.
Remove the coconut shrimp and repeat the process until all the shrimp are cooked.
For the Sweet Red Bell Pepper Chili Sauce
In a food processor or blender, add the chopped red bell pepper, sugar, white wine vinegar, red pepper flakes, grated ginger, and minced garlic. Blend until the mixture is liquified and smooth.
Pour the mixture into a small saucepot and bring to a low boil/simmer. Occasionally stir the mixture and let it cook for 5 minutes.
Strain the sauce through a fine-mesh strainer. You might need to use a rubber spatula to push the sauce through the strainer. Discard the solids. Pour the sauce back into the small saucepot.
Mix the cornstarch and water together to make a slurry. Add the cornstarch slurry to the sauce. Bring the sauce to a simmer again for 2 minutes or until it has thickened (when it can coat the rubber spatula or wooden spoon).
Pour the sweet red bell pepper chili sauce into a container and allow it to chill in the refrigerator. The sauce can be made ahead of time.