01 - Preheat the oven to 400°F (200°C) and line a baking sheet with parchment paper.
02 - Pat the chicken breasts dry with paper towels and season both sides evenly with kosher salt and freshly ground black pepper.
03 - Arrange three shallow bowls: place the flour in the first, whisk the eggs with water in the second, and combine the shredded coconut with panko breadcrumbs in the third.
04 - Dredge each seasoned chicken breast in the flour, shaking off excess. Dip into the egg wash, allowing any extra to drip off. Press firmly into the coconut-panko mixture, coating both sides thoroughly.
05 - Heat about 1/2 inch of oil in a large skillet over medium heat. Fry the breaded chicken breasts for 2 to 3 minutes per side until golden brown. Transfer to the prepared baking sheet.
06 - Bake the pan-fried chicken in the oven for 15 to 18 minutes, until the internal temperature reaches 165°F (74°C) and juices run clear.
07 - While the chicken bakes, combine the apricot preserves, soy sauce, rice vinegar, grated ginger, minced garlic, and crushed red pepper flakes in a saucepan. Simmer over low heat for 5 minutes, stirring occasionally, until slightly thickened.
08 - Serve the coconut chicken hot, drizzled with the apricot sauce or with the sauce served on the side for dipping.