Thanks,
I was able to fix this issue with combination of EdgeNGrams and fuzzy query.
here are details
http://www.lucidimagination.com/blog/2009/09/08/auto-suggest-from-popular-queries-using-edgengrams/
I just added fuzzyquery operator and seems to be working so far
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You should be building your index on a field that creates tokens on whitespace.
So your dictionary would have "iphone" and "case" as separate terms instead of
"iphone case" as one term. And if you query on something like "iphole case",
it will give suggestions for "iphole" but not for "case" b