Much appreciated everyone! I wish my camera took better photos. It looks much better in person. My female clown has been using that finger leather as a host for the past few days (which you can see her with it in the photos).
To answer 14gallonbiocube's question: It is a toadstool. I have had him for awhile. In fact, he was in my old 14 gallon bio-cube before putting him into my Red Sea Max. He seems much happier with better lighting. I just placed the toadstool in a little "bowl area" formed in the live rock for lack of a better term.