I postponed using clay pots for a long time because I thought they were ugly, then I found out once you put them in your hardly notice them. Plus, they're super cheap. I just boiled them for a quick bit (kill all those nasties floating around the garden section) and got the biggest drill bit I had and made a hole in the top. If the dwarf cichlids your are talking about are apistogramma, this works perfectly. Just get the 2nd or 3rd smallest pot. If you don't like the look, just push it down into the substrate more so you can't really see the top.