I got a dwarf gourami a week ago and all of a sudden he's started sucking on my otos if they're in his way.
He's actually taken a small chunk out of one of the otos tail
That's not good! My dwarf Gourami seems to have become crankier with age, but the worst he ever does is chase my bolivian rams a bit. He's staked out a part of the tank and feels the need to defend his turf from them.
My experience is once a bully, always a bully. One thing that might help is putting him in a tank with bigger fish (if you have one). Good luck!
I'll try and build a cave for it, although it is heavily planted with a few hiding places already. I'll give it a try now though hopefully it'll work!!