Add the coconut to a food processor and pulse until finely chopped. Add the panko, kosher salt, and black pepper. Pulse once or twice, just to combine.
Set out three bowls: flour in the first, beaten egg in the second, and the coconut-panko mixture in the third.
Dredge the chicken in flour and tap off the excess. Dip in egg, then press into the coconut mixture so every side is coated. Set the pieces on a plate.
Heat the canola oil in a large nonstick skillet over medium-high heat. Add the chicken in a single layer and cook until golden, about 4 to 5 minutes per side, or until the center reaches 165°F. Work in batches if needed.
Transfer the chicken to a plate and tent with foil. Wipe out the skillet.