Oh, yeah, I forgot about mini-bloodworms. None of my fish have ever really liked mysis shrimp much, I'm not sure why. They're too big for some...
FM, when your Dempsys get bigger you might try "regular" size pellets like shrimp (now catfish), earthworm or other types. Read the labels. Some "cichlid" pellets, wafers, etc are formulated for the mainly vegetarian African cichlids. New World cichlids like yours are more omnivores & need more protein but some plant material is good too.
What water conditioner did you use? How often & how much water do you change? The pinkish color could have been from a water quality issue. Do you test for (at least) ammonia & nitrate? It can take a while to learn how to keep nitrate under 20ppm (less is better). Ammonia should not be a problem (ie never there) unless you overfeed sometimes. As your fish grow you may have to change your routine. Many of us do weekly water changes, it's a good habit. A tiny "poo vacuum" or 2 might not be enough to keep water & fish happy. Some of us do 50% every week. I have slacked off on that the last few years; I have few fish & lots of plants. My nitrate never gets above 5ppm...but that's just 1 of the easy things we can test for. There are others we can't, so water changes help in many ways. Whenever my fish look "off" the first thing I do is a water change. It really can work miracles!
Sorry to go off on a rant when you just asked about food...As you already can see I tend to long, bossy posts, it's part of my "charm" LOL