Your Edward appears in 1881 census as 'Master of a Lodging House' with english born wife - he would appear to be the Edward Godwin living with Samuel Kneen Shoemaker in 1841c in Castletown which agrees with Edwards stated birthplace castletown - however there would appear to be no baptism I can find (leg or illeg) that matches. Samuel had an illeg child by Ann Kelly who is absent from 1841c but re-appears by 1851 after the marriage of Saml + Anne - Anne is old enough to be mother of Edward but ??
The other Goodwin family on the Island are the more famous one based in Peel and derive from George James Goodwin and english born schoolmaster + wife Alice Morrison (their son was edmund Goodwin )