Preheat oven to 400 degrees F (200 degrees C). Stack a cooling rack on a cookie sheet and spray with cooking spray.
In a food processor, combine all ingredients for the sauce, reserving half of the chile. Process until smooth. Taste the sauce- if you’d like it to be spicier, add the remaining chile.
In a bowl, combine the flour, salt, and pepper. In another bowl, whisk together the egg and coconut milk. In a third bowl, add the shredded coconut. Dip the chicken strips first in the flour mixture, then the egg mixture, then into the rice to coat. Set on the arranged cooling rack.
Bake the chicken for 10 minutes. Remove from the oven and flip the chicken pieces. Return to the oven and bake for another 3-5 minutes, until chicken is cooked through.