The question had been asked and there had been a promise made for the very version of Picasso that I am using: How do I send a circular bitmap to an ImageView using Picasso?
Use this library to create a circular imageview.
To make a circular ImageView, add this CircularImageView library to your project
and add CircularImageView in your layout XML
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Then use picasso to load required image into this imageView. Picasso does all the caching you dont need to worry about it