See, I think that Cuddy playing games with him is exactly what he needs. He does a better job when he has the fun and the challenge. I think she finally figured out that fighting him didn't help. I think that the way she interacts with him shows that she knows him and how to deal with him.

That particular scene, to me, shows how much she knows him. If she'd really had a problem with him hiring the extra person, she would have stood up to him. The fact is, it isn't that big a deal. She's the one who forced Foreman on him, or he would have hired three people. She knows when to pick her fights and when to give in. In this instance, it was better to let him have his way.