In a resealable bag, combine half of the coconut milk, garlic, soy sauce, and lime juice. Add chicken strips, seal, and massage to coat evenly. Refrigerate for at least 3 hours. Reserve remaining coconut milk.

Preheat oven to 400°F (200°C). Line a baking sheet with foil and lightly grease with oil.

Pulse shredded coconut in a blender or food processor until crumb-like. Transfer to a bowl and mix with panko, salt, and black pepper.

Place flour in one shallow bowl and beaten egg in another.

Remove chicken from marinade and shake off excess. Dredge each strip in flour, dip in egg, then coat thoroughly in coconut crumb mixture.

Arrange chicken strips on the prepared baking sheet.

Bake for about 30 minutes, flipping halfway, until golden brown and cooked through.

In a small saucepan, combine reserved coconut milk and mayonnaise. Simmer gently over medium-low heat until warmed and smooth.

Serve coconut chicken hot with coconut dipping sauce on the side or drizzled over the top.