In a medium bowl, whisk together the coconut milk, lime juice, garlic powder, salt, and black pepper. Add the chicken pieces to the marinade, ensuring they are fully coated. Cover the bowl and refrigerate for at least 30 minutes, or up to 2 hours, to allow the flavors to meld.

While the chicken is marinating, prepare your dredging stations. In one shallow dish, place the all-purpose flour. In a second shallow dish, whisk the two eggs. In a third shallow dish, combine the panko breadcrumbs and shredded coconut. Mix them well.

Remove the chicken from the marinade, letting any excess drip off. Do not wipe it dry. Dredge each chicken piece first in the flour, coating it evenly. Then, dip it into the beaten eggs, allowing the excess to drip off. Finally, press the chicken into the panko and coconut mixture, ensuring a thick, even coating.

Heat about 5cm (2 inches) of vegetable oil in a large, heavy-bottomed skillet or Dutch oven over medium-high heat until it reaches 175°C (350°F). A small piece of breading should sizzle immediately when dropped into the oil.

Carefully place the coated chicken pieces into the hot oil in a single layer, working in batches to avoid overcrowding the pan. Fry for 3-5 minutes per side, or until golden brown and cooked through. The internal temperature of the chicken should reach 74°C (165°F).

Using a slotted spoon or spider strainer, remove the cooked chicken from the oil and place it on a wire rack set over a baking sheet to drain any excess oil. This helps keep the coating extra crispy.

Serve the crunchy coconut chicken immediately while it's hot and crispy. It's delicious on its own, with a dipping sauce like sweet chili sauce, or as part of a meal.