Prep the air fryer: Preheat to 390°F (200°C) for 3–5 minutes. Lightly spray the basket to prevent sticking.
Set up your breading station: In one shallow bowl, whisk the flour, cornstarch (if using), 1/2 teaspoon salt, garlic powder, and paprika.
In a second bowl, beat the eggs with a splash of water. In a third bowl, combine panko, shredded coconut, remaining 1/2 teaspoon salt, and black pepper.
Dry the shrimp: Pat the shrimp very dry with paper towels. This helps the coating cling and crisp up.
Dredge in layers: Working a few at a time, toss shrimp in the flour mix, shake off excess, dip in egg, then press firmly into the panko-coconut mixture.
Make sure both sides are well coated.
Arrange in the basket: Place shrimp in a single layer, not touching. Lightly mist the tops with oil spray for even browning.
Air fry: Cook for 6–8 minutes, flipping halfway and spritzing again if needed. Shrimp should be opaque and the coating golden-brown.
Check doneness: The shrimp should be firm, not rubbery.
If needed, add 1–2 more minutes. Avoid overcooking.
Serve immediately: Squeeze fresh lime over the hot shrimp and serve with your favorite dipping sauce.