Take little bit of onion in a non-stick pan and cook the onion till it turns pink.
Stir in coconut milk, peanut butter, sugar and salt with a cup of water. Let it cook for about 10 minutes.
Add lemon juice to it and keep the sauce aside.
Take the mashed potatoes in a bowl and add salt, chilli powder, garlic, green chili and dry mango powder.
Mix well and make round balls out of the mixture.
Take gram flour in another bowl and add salt and chilli powder to it. Add just enough water to make the mixture semi solid.
Dip the potato balls in this gram flour mixture and deep fry them till golden in color.
Let these Aloo Bhondas cool down. Add them in the peanut sauce.