In this article, we present a scheme for solving two-dimensional hyperbolic equation using an expanded mixed finite element method. To solve the resulting nonlinear expanded mixed finite element system more efficiently, we propose a two-step two-grid algorithm. Numerical stability and error estimate are proved on both the coarse grid and fine grid. It is shown that the two-grid method can achieve asymptotically optimal approximation as long as the coarse grid size H and the fine grid size h satisfy h = O(H(2k+1)/(k+ 1)) (k >= 1), where k is the degree of the approximating space for the primary...