For the red curry dipping sauce: Heat the oil in a small saucepan over medium-high heat. Add the curry paste and stir frequently until fragrant, about 2 minutes. Add the coconut milk and whisk frequently until smooth and thickened slightly, about 3 minutes.
Whisk in the peanut butter until incorporated and the sauce is smooth. Remove the sauce from the heat and whisk in the sugar, fish sauce, lime juice and salt to taste. Let cool to room temperature, then transfer to a serving vessel, wrap with plastic and refrigerate at least 30 minutes before serving.
For the coconut shrimp: Heat 3 inches of oil in a deep pot or Dutch oven to 350 degrees F. Line a baking sheet with paper towels.
In a medium bowl, mix together the panko and sweetened coconut. In a second medium bowl, beat the eggs. In a third medium bowl, combine the flour, garlic powder, turmeric, 1 teaspoon salt and several grinds of black pepper to taste. Dredge the shrimp in the flour mixture, then the egg, then the panko mixture.
Working in batches, fry the shrimp until golden brown, about 3 minutes. Drain on the prepared sheet tray and immediately season with salt. Serve with the curry dipping sauce.
You can store the extra red curry dipping sauce in the refrigerator for up to a week. You can heat it up and use it as a curry sauce over rice or use it as a dip for crudite.