Place the shredded coconut, arrowroot starch, salt, cinnamon, and chile powder in a gallon-size zip-top bag or large storage container with a tight-fitting lid. The plastic bag method is the least messy, so I highly suggest that. Seal it and give it a good shake to mix everything together. Set aside.
Using kitchen shears, trim any fat off the chicken and cut into bite-sized pieces.
Place all chicken pieces in the plastic bag, seal, and start shaking until all chicken pieces are coated. Set aside.
Heat a large skillet over medium-high heat. Add enough coconut oil to have a thin layer on the bottom, about a tablespoon or two, depending on your skillet size.
Using a slotted spoon, take chicken out of the bag and place in the skillet. Don't cook it all at once, add just enough so the pieces aren't touching. It takes me about 3-4 batches to cook them all.
Cook about 2-3 minutes, when the chicken is turning opaque and white about halfway up the sides. This may take longer depending on how big you cut them.
Using a wooden spatula, gently scrape/scoop the chicken to flip them over and continue cooking until they are cooked all the way through.
Remove and drain on a paper towel-lined plate.
Repeat steps 5-8 until all chicken is cooked. Serve with Honey Mustard Dip.