Lo puoi fare così ?
Versus
Puoi lo fare così ?
Which one is correct? Are both version correct? If so, is there any differences or preferences between them?
There are two possible correct forms: your first one (Lo puoi fare così?) and the one where the pronoun lo is appended to the infinitive fare, yielding farlo: Puoi farlo così?
The preference among the two forms is mostly subjective and euphonic.
(Something more can be found in the answer to a question that touches on a similar topic: «Are there rules for the positioning of clitic pronouns?»)