Heat oil in a non-stick skillet. Add Panko and cook until golden. Remove to a shallow dish to cool.
Using the same skillet, add coconut and brown slightly - do not overdo or the coconut will burn in the oven when the chicken is baked. Toss coconut with Panko in the shallow dish.
Pour coconut milk into a second shallow dish. In a third dish, combine 1/2 cup flour with salt and pepper.
Line a baking sheet with foil and spray with cooking spray. Wash chicken and dry with paper towels. Dredge in flour, then dip in coconut milk, followed by coconut/Panko mixture. Place on baking sheet.
Bake for 15-20 minutes or until cooked through, until the internal temperature reaches at least 165 - 170°F. Make sure to keep on eye on them because the coconut can burn if you don't watch it.
Serve with dipping sauce(s) of choice, if desired!