In a small saucepan, combine rice vinegar, sugar, water, minced garlic, and red chili flakes. Bring to a simmer over medium heat, stirring until sugar dissolves. Whisk in the cornstarch slurry (1 tbsp cornstarch + 2 tbsp water). Simmer for 1-2 minutes until the sauce thickens and becomes glossy. Remove from heat and let it cool.

Arrange three shallow bowls. In bowl 1: whisk flour, paprika, garlic powder, salt, and pepper. In bowl 2: beat the eggs. In bowl 3: combine panko and shredded coconut.

Holding a shrimp by its tail, dredge it in the flour mixture, then dip it in the egg wash, and finally press it firmly into the coconut-panko mixture to coat thoroughly. Place breaded shrimp on a plate.

Heat oil in a heavy-bottomed pot to 350°F (175°C). Fry the shrimp in small batches for 2-3 minutes, flipping once, until deep golden brown and crispy. Do not overcrowd the pot.

Remove the cooked shrimp with tongs and place them on a wire rack to drain excess oil. Serve immediately with the sweet chili dipping sauce.