In a large, heavy pot, heat 2 inches of the oil to 360.
Meanwhile, in a large bowl, whisk together the flour,salt and baking powder. Add the water and whisk until smooth. Let the batter stand for 15 minutes.
In a wide, shallow bowl, toss the coconut and bread crumbs together.
Put the shrimp into the batter. One by one remove the shrimp and dredge in the coconut mixture, pressing to help the coconut adhere. Fry the shrimp in batches in the hot oil for 1 1/2 to 2 minutes or until brown. Use a slotted spoon to transfer the shrimp to a baking sheet lined with paper towels.
In small,non-plastic,microwave-safe bowl, stir together the dipping sauce ingredients. Microwave on high (100% power) about 45 seconds or until bubbly. Stir and serve with the shrimp.