iOS 5 now has a new feature that allows users to add keyboard shortcuts for iPad. Users can add a keyboard shortcut using the options provided as part of the Keyboard settings.
Tap the Settings icon on the home screen then navigate to Keyboard under General Settings.
In the Keyboard settings, tap the Add New Shortcut option available under Shortcuts section.
For example if you want to create a shortcut for “This is Cool !”. Then type the Phrase as “This is Cool !” and the Shortcut as “tic”.
Now if you open any application such as Mail and when you type the text as “tic”, then you will be provided with the shortcut phrase as shown below.