Way back in the 60's it was a common phrase used for an erection. It was used in reference to the teacher on the Archie cartoon series, Miss Grundy. If your penis was Really hard, it was called a "Grundy" because it pulled so hard on your skin that the leaders(tendons) in your neck showed like the teacher on the Archie cartoons.
That hot chick over there in the string bikini is giving me a Grundy!!
A tradition seen in New Zealand high schools where at the end of the year, students strip down to their underwear and run across their school grounds (or another school)
Person 1 - "Did you hear? Steve went to the grundy run yesterday!"
Person 2 - "No shit Sherlock, like two thirds of the school went."