Place raw shrimp on a sheet pan and pat try with paper towels.
Create three bowls for dredging the shrimp: first bowl, stir together the flour, salt and pepper. Second bowl, whisk together the coconut milk and egg. Third bowl, combine the bread crumbs and coconut.
Holding on to the tail of a shrimp, first dip into the flour mixture and coat fully. Next, dip into the milk mixture. Lastly, dip into the coconut/bread crumb mixture, coating the shrimp, and leaving the tail uncoated.
Place each coated shrimp on a clean pan or plate.
Preheat your air fryer to 350 degrees. (I have a Ninja Max XL Air-Fryer which needs just three minutes to preheat. Be sure to check the owners manual of your air fryer to see how long it needs to preheat.)
Placing 6-8 shrimp into the bottom of your air fryer in a single layer, cook at 350 degrees for 7-8 minutes or until shrimp are golden brown. You'll likely need to cook 3 batches (given the size and number of shrimp you have). As you cook the later batches, keep your cooked shrimp warm on a sheet pan in your oven at 275 degrees, or eat right away.