I have a similar problem with a female dwarf cockatoo cichlid. It happened soon after being introduced into my tank. The eye swelled up or "popped" and was also cloudy. From what I've read a cloudy eye can be caused by fungus as well as bacterial infections, so it takes a bit of guesswork to treat the problem, unless you're an expert. Because I wasn't sure of the actual diagnosis and because I don't have a hospital tank, I decided not to medicate and just increased my water change schedule from once a week to every three days for now.
My water quality is good (0. 0. 5. 7.0-7.2) and I have 8 tetras, 3 otos and 1 bn in the tank not showing any signs of problems. I also have a moderately planted tank. After the first couple of days in the tank the cloudy eye appeared and the fish was timid and sluggish and wouldn't eat. However, a couple of days later the fish seemed to be acting normal although the cloudy eye was still there.
Right now the fish seems quite comfortable, it is eating and is not afraid to chase away a tetra or two. The eye seems to be getting better as it is not bulging as much but it is still cloudy. The cloudiness seems a bit different though, almost like it is scabbing over or drying out, if that's possible.
Incidentally, I first noticed the problem on February 18. I don't know how long it may take for this to clear up completely, but it is also entirely possible that the fish may not make a full recovery. If that's the case, then treating the problem more aggressively may prevent permanent damage.