Prepare sauce: Melt the butter in a medium saucepan with a tight-fitting lid over medium heat then whisk in remaining sauce ingredients (cognac through coconut flour).
Bring to a slow boil then reduce heat, cover and simmer for 10 to 15 minutes. Cook lamb chops: While sauce is simmering, season lamb lightly with salt and pepper.
Melt the butter in a large skillet over medium-high heat; add lamb chops and cook for 5 to 8 minutes per side or until they reach desired level of doneness. Serve sauce on top.