CyanogenMod team member Koushik Dutta has recently uploaded this video to YouTube demonstrating us a feature he developed and integrated into CyanogenMod that allows the users to screencast their devices' screen.
According to the developer, the feature is activated by holding the Power and Volume up keys simultaneously while the screenshot feature remains with Power and Volume down keys. Since this is a rom integrated feature, there might not be an actual app for this in the app drawer from the look of us, but you will be seeing it as a notification on the notification screen where you have a stop button aswell as an option to show the touches.
This is absolutely great news for people who make video reviews of Android apps and games as it can be done quicker than recording the whole device using a camera, but bad news for screencast apps developers that charge money for their apps. Unlike those, this one comes free with the custom rom.
It is said that this new feature will turn out soon on a 10.2 nightly build.