I have Pi hole setup on my Edgerouter-X as DNS1 so all clients should be pointed to pihole for DNS
When I login to my pihole GUI, it shows only 2 clients. 192.168.1.1 which is my router and localhost. Is that normal or should I see all client IP's as well? It's my first time using pihole so I just want to be sure it's working correctly.
Welcome to the Pi-hole community, PabloS83. 
Your observation would be perfectly normal if you configure your router to use Pi-hole as its upstream DNS server (commonly a WAN/Internet setting).
It would be preferable to have your router distribute Pi-hole as local DNS server via DHCP, as that would allow you to attribute DNS traffic shown in Pi-hole's Query Log to individual clients.
Not all router models support that, though.
Pi-hole's Post Install documentation provides an overview and has links to further options and details.
It's already doing that. Under DHCP DNS for clients is set to 192.168.1.1 and under system in the edgerouter x DNS #1 is set to the Pi hole ip so a client should get routed to 192.168.1.1 first, the to the pihole 192.168.1.10 or at least I think thats how it shoudl work
How can I test if it's working via nslookup?
That's configuring Pi-hole as upstream DNS while distributing your ER-X as local DNS.
I think you will find that your clients are using 192.168.1.1 as DNS server.
A simple nslookup, executed from a client, will show the DNS server being used for resolution.
Where do you have this DNS setting? In a separate router or on the Edgerouter? Sketch out your setup, take a photo of it and post the photo here.
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