Another thing to consider, and YMMV of course, but low-carb has helped to
curb my appetite, so even if the food is more expensive, it stretches
farther, so it all balances out.

I think it depends on what you were eating before.  We tend to think
of meat as expensive.  But plain, raw meat in comparison to most
prepackaged foods is pretty cheap food.  On a per pound basis, meat is
cheaper than Fritos or ramen noodles.

On the other hand, if you cooked primarily from scratch before,
low-carb is more expensive.  Even the chickens I raise myself cost
more per pound than a sack of wheat berries.

Produce can be relatively expensive too, depending on what you buy.  I
have expensive tastes in this area - I love purple bell peppers and
dislike the cheapo green ones, I love mesclun mix and don't care for
iceberg lettuce, I adore radicchio which costs more per pound than the
most expensive Angus cuts of beef.  I garden to cut the cost of the
expensive stuff.  In fact, I started gardening in containers on a
balcony in a city apartment and *only* grew the expensive stuff!
Lettuce-type greens can be grown year-round in containers sicne
they're easy, so you can grow them inside in winter.  Peppers can be
chopped and frozen and therefore available all year too.

Basic frugal low-carb tips:

Buy lots of eggs or raise your own.  Eggs are a cheap source of
protein.  And check prices!  Before ours were laying, I discovered
buying a 30-pack of small eggs from one particular store was much
cheaper than buying large eggs anywhere even if you figure 2 small
eggs = 1 large.  Figure out your best egg buy and use it heavily -
keep hard boiled eggs on hand for snacks and make custards and quiche.
Eggs are not just for frying!

Check circulars every week to get a feel for the best prices for meats
in your area.  I know what the normal prices are for chicken leg
quarters, chicken breast, hamburger, country style ribs, hams, pork
chops, chuck roast and steaks, breakfast sausage, polish and smoked
sausage and mild italian sausage, etc.  - all the stuff we normally
buy.  When it goes on sale at a significantly lower price, I fill up
my freezer.  I pick up chicken leg quarters for $.25/lb when they're
on sale... and rarely pay more than $1/lb for any type of pork.  I buy
a whole ham at $.69/lb and slice the majority of it into thick slices
for pan-frying, keeping the ends to roast as normal hams.

Buy fresh produce in season, it will be locally-grown stuff and
therefore better for the most part. You can freeze, can or root-cellar
for use year-round.  If you have to buy something out-of-season, buy
it frozen rather than fresh - it'll usually be cheaper as you're not
paying transporation charges for getting something from CA or FL.

Dairy costs stink where I am - our state has minimum prices for milk
and the stores can't put it on sale for less.  But I can save on lots
of other dairy products.  I rarely pay more than $2/lb for block
cheese - I buy it in bulk, freeze it, and thaw at room temperature for
24-36 hours before refrigerating to limit the change of texture often
found in thawed cheeses.  I buy butter on sale at $1/lb - usually gets
to those prices 2 or 3 times a year, and stock up and freeze it.
Cream cheese can be frozen *if* you are using it in recipes where
you're going to soften it and melt it into something else, but
generally doesn't freeze well.  Ricotta freezes very well so you can
stock up when it's on sale.

If you have milk or cream close to it's expiration date, you can save
it by turning it into an easy vinegar cheese.  Basically, you heat a
gallon of milk to 180 degrees, add a cup of vinegar, stir for a bit,
let sit until cooled, mix in a bit of salt, then drain through
cheesecloth in a collander overnight.  It makes something sort of
in-between cream cheese and cottage cheese.  It's rather bland, but
takes herbs well and would probably be excellent with "cheese ball"
type recipes (though I haven't tried that yet).

Yes I have thought of diluting the coffee.  I have both caffeine and
noncaffienated coffee in the house, so I could do it.  I'm wondering how the
induction period is going
to affect my energy level around about mid-afternoon.  If I need a cup of
caffeinated coffee then I will have a cup, but I am hoping my energy level
will be higher without the caffeine.
Unfortunately I am still needing the one cup in the afternoon.  Time will
tell.

Thanks,
-The Dude