Grilled Watermelon and Prawns

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2 cups water

1 cup granulated sugar

2 red bell peppers, cored, seeded, and chopped

2 jalapeno peppers, seeded and chopped

1 clove garlic, crushed

3 cilantro sprigs, chopped

1 pound (16 to 20 count) prawns, peeled and deveined, with the tail left on

1/4 cup olive oil

2 limes, halved

1/2 teaspoon cayenne pepper

2 teaspoons chili powder

2 teaspoons salt

1 teaspoon black pepper

1 small seedless watermelon, sliced into 1/4-inch wedges, rind on

Unsweetened coconut, toasted for garnish

1 scallion, sliced for garnish