Don't get scared off by folks correcting you about how you cycled your tank. We all learn. Hopefully you will do more research before proceeding. Don't worry, we all make mistakes. I have also had a few "old timers" suggest cycling a tank with damsels. They may not have posted it publicly, but it was suggested by more than one person and on more than one forum.
Also, though I am FAR from an expert so take what you will from my advise, I have a nice damsel in my tank. I read all the horror stories and still got one. It is as nice as any fish I have in my tank. He was however the LAST fish I added and one of the smallest. If you choose to keep them and do add another fish in the future, take them out, rearrange the tank, add the new fish then add back the damsels one at a time. Also make sure the new fish is larger. Really though, two fish should be your max in that tank. Even after it matures.
From the way you discribed you test results I'm guessing you are using test strips. Correct? Do not trust test strips. Even with liquid tests, which are much more accurate, good results are hard to get and can be a challenge to read correctly. My case in point. My tests have always been great, still I ended up with a boat load of issues.
Take it slow and don't be afraid to ask.