Stir together first 4 ingredients in a shallow dish. Stir together eggs and water in a bowl. Dip fish in egg mixture; dredge in flour mixture.
Pour oil to a depth of 2 inches in a Dutch oven; heat oil to 375°. Fry fish in batches 2 1/2 minutes on each side or until golden. Serve with Lime-and-Caper Aioli; garnish, if desired.
*Grouper or any small, firm whitefish may be substituted for flying fish.