Halve each avocado, remove the pit, scoop out avocado flesh and cut each halved avocado into 4 wedges. Heat enough oil to fry avocado in an 11–12 inch nonstick deep frying pan over medium.
In a bowl, mix together flour, 4 teaspoons ranch seasoning and water. In another bowl, put shredded coconut.
Dip each avocado wedge in the flour mixture, coat with shredded coconut, put 8 avocado wedges into the hot oil first, fry until all sides are golden brown and drain on paper towels lined plate. Repeat this one more time with the rest of 8 avocado wedges.
For the dipping sauce, in another bowl, mix together 4 teaspoons ranch seasoning, yogurt, sweet chili sauce and coconut milk. Serve avocado coconut ranch tempura with the dipping sauce.