Peel and devein the shrimp but leave the tails on. Rinse and pat dry, season with salt and pepper.
Preheat air fryer to 400 Deg F. Or per your air fryer instructions (See notes for conventional oven)
Set the tapioca starch in a shallow bowl, next to that the coconut milk in another shallow bowl and in the third bowl whisk together the panko and two kinds of shredded coconut.
Working with one shrimp at a time, coat in the tapioca, tapping off excess, next dip in coconut milk and fully cover the shrimp, again tapping off excess then finally set into the panko coconut mixture and press the mixture into the shrimp making sure it is well coated. Set the shrimp on a parchment lined tray after they are coated in everything and ready to fry. Once all are coated set the shrimp on the tray in the refrigerator to chill for 20 minutes.
Preheat your air fryer according to manufacturers directions and spray the air fryer basket with oil.
Place the shrimp in the bottom of the basket in an even layer, do not overlap them as many that fit in your fryer. Spray with oil. Fry at 380 Deg F for 12-14 minutes, flipping carefully at 6-8 minutes, spraying the tops with oil after flipping, until golden brown. You will have to make these in batches, once fried, set them on a wire rack set on a baking sheet in a warm oven to keep hot ( set oven to 200 Deg F then turn off but keep baking tray in oven to keep warm). My air fryer basket fits 10-12 shrimp in an even layer. Frying time will vary depending on how many shrimp you can cook at once.
Once all the shrimp are fried, serve with sweet and spicy passion fruit dipping sauce.