I think you have done the right thing.
If it hasnt dried up and gone down in a week, I would take your dog to the vet for further treatment.
Salt, whether its plain or epsom, is very good for this type of thing.
Im not sure I would bother with any creams of any type, but you seem to know what you are doing!
Watch for signs of the cyst filling up again or redness around the site.
Sounds horrid...how did he get a cyst...?