Original images will be stored in the disk cache. Ensure that your server is sending down correct headers to allow caching for whatever period of time you desire. When the second request is made and the image is already in the disk cache, it will be returned immediately.
By default, disk caching only works on Android 4.0 and newer because that's when it was introduced into the built-in HTTP client. For caching on all API levels, include [OkHttp][1] in your app. Picasso will see OkHttp automatically and use it. This will not only provide you with caching everywhere but also with an all-around better HTTP client.