Hmm..Grados have a lot of things going on, but weak midrange is usually not one of them. What are you comparing it to CD replay? If so, what CD player.
My shot-in-the-dark guess is that the VTA is not correct on your setup. Grados sometimes like the back of the arm downward. Is it possible to lower the rear of the arm? If this is not possible, cut out a few cardboard circles the same size as the platter and place them on top of the platter, but under the mat of course you will have to punch, or cut a center hole in them for the spindle to fit through. By raising the cartridge, it is the same as lowering the back of the tonearm. Give it a try and please report if this begins moving things in the correct direction.