With that code Im 100% sure you wont get that output 🙂 For instance in your query you're selecting "contacts" as a field. Secondly, you're using mysql_fetch_row which will give you array with numerical keys ($line[0] and so on..) so $line['Friends'] is non existant.
BUT as piranha said, you need to go back to drawing board and redesign your database and scrap this solution to trashcan. It will give you more problems in the future and also overhead.
Normalization can be hard to figure out first but you'll have to learn that some day because you cant live without it in the future.
Im not sure what data you are holding now but I presume you have a contacts table and you want to store friends which are other contacts(friends are id's of same contacts table)? Then you would create 2 tables, one for contacts and one for friends to hold relation of contacts and friends. Like this:
contacts
-----------
id
name
email
friends
--------
id
contact_id
friend_id
Now you could easily add friends to some contact. For example if you like to add contact id 2 as a friend to contact id 1 you would just make the next insert query:
INSERT INTO friends (contact_id,friend_id) VALUES (1,2);
And when you want to get friends of certain contact id you would do a select like this:
SELECT name,email FROM contacts LEFT JOIN friends ON contacts.id=friends.friend_id WHERE friends.contact_id = 1;
As my post got so huge, laserlight has also aswered and I also suggest you read the normalization tutorial. You'll get better understanding of the queries I gave you.