We have measured CO line profiles in a time series of 42 high-resolution 1.6 − 2.5 μm spectra of R Cas. The low-excitation CO first overtone lines have a contribution from a ∼1000 K region. We show that this region undergoes a periodic changes on time scales many times longer than the photospheric pulsation. Comparison with interferometry and models suggests that the ∼1000 K region is at ∼2 R* and cospatial with the region of SiO masers and grain condensation. The CO lines are entirely in absorption requiring formation in a layer thin compared to the stellar diameter. The CO excitation temperature has been measured as low as 600 K suggesting that grains with a variety of compositions condense at ∼2 R*.