Preheat oven to 200C/400F/Gas 6 and line a large, rimmed baking sheet with parchment paper. Set aside.
Combine flour, smoked paprika, ground cumin, garlic powder, and onion powder in a shallow dish. Season with salt and black pepper, as desired, and set aside.
In a second shallow dish, gently whisk the eggs and water until frothy. Season with salt and black pepper, as desired, and set aside.
Add shredded coconut to a third bowl and set aside.
Working one at a time, dredge each shrimp in the seasoned flour, then dip it in the egg mixture.
Allow excess egg to drip off before transferring shrimp to the bowl of shredded coconut.
Turn to coat shrimp thoroughly before transferring them to the prepared baking sheet.
Repeat with remaining shrimp and season with additional salt and black pepper, if desired.
Place baking sheet in preheated oven and bake until golden brown and crispy, around 12-15 minutes, turning once halfway through.
Meanwhile, add avocado, cilantro, lime juice, and cumin to a food processor or blender and blend until smooth. Add a tablespoon or two of water, if necessary, to reach desired consistency.
Season with salt and black pepper, to taste. Transfer to a small serving bowl and sprinkle with red pepper flakes. Set aside.
Remove shrimp from oven and serve immediately with avocado-lime dip on the side. Enjoy!