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Remove the shell from the shrimp, leaving the tail intact, if desired.
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Place cornstarch in a gallon-size bag and add the shrimp. Toss to coat.
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In a medium bowl, whisk coconut milk and honey until combined. In another medium bowl, combine coconut and panko. Remove shrimp from bag, gently knocking off any excess cornstarch. Dunk shrimp in the liquid mixture, then dredge in the coconut mixture. You may have to press loose coconut and panko gently onto the shrimp.
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Transfer coated shrimp to the basket of your air fryer. (I fried mine in two batches since the coating is somewhat fragile.) Heat your fryer to 350 degrees F and cook 6-8 minutes, flipping shrimp once, until the coconut is golden brown and the shrimp are cooked through.
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Meanwhile, prepare the sauce. In a medium bowl, combine coconut milk, yogurt, pineapple, salt, and pepper in a bowl. Top with toasted coconut.*