The Krotchy Grenade is a weapon introduced in multiplayer, and featured in Postal 2 Complete, Paradise Lost, and Postal III. It deals massive damage to enemies When dropped with secondary fire, the grenade will say "Get off me, Gimme some room" in Krotchy's voice, and automatically explode after a few seconds. The grenades themselves look like krotchy dolls(altough the doll Krotchy in the box has less polygons than the one used here), so they are most likely terroristic weapons made by making ordinary Krotchy dolls into grenades. They are located only on the open trailer in the back of Toyz 'n tha hood. In Paradise Lost, it is a very rare weapon scattered around in various locations.
In Postal III, they are supplied by Osama and are filled with plutonium. The Dude is tasked with delivering the toys to Krotchy at his restaraunt, "Krotchy's Tossed Salad" while elude Randy Jones, his segway biker gang, and Nerds.