Dry shrimp with paper towel, season with salt and pepper. Set aside. Mix coconut and breadcrumbs. Set aside. In a large bowl, mix flour and paprika. Whisk eggs in a medium bowl. Set aside.
Place seasoned shrimp into the flour-paprika mixture and toss until coated. Transfer shrimp, one by one, shaking excess flour, to the egg mixture. Toss until coated. One by one, toss shrimp in the coconut-bread crumb mixture until evenly coated. Place the breaded shrimp on a large plate and allow them to rest while you prepare the sauce and the oil heats up.
In a small saucepan, combine ½-cup of water, vinegar, sugar, garlic, ginger, salt, and dried chili flakes. Cook on medium heat and stir until sugar is dissolved. In a small cup, mix 1 tablespoon of water and cornstarch until dissolved. Whisk the mixture into the sauce and bring to a boil until thick. Remove from heat and set aside.
Heat oil in a large skillet over medium heat until it reaches 365-375°F. Fry shrimp in batches until golden brown, about 3-4 minutes per shrimp. Transfer shrimp to a baking sheet lined with paper towel to drain excess oil. Serve hot with sweet chili sauce on the side.