Login to your routers command line interface, via ssh or the CLI button in the web interface. Add an option with port=5353 as the value and apply changes. Login to your edgerouter web interface, go to the config tree tab then click service -> dns -> forwarding. Here I'm using port 5353 but you can use whatever you want, just remember it for the later steps. This is because we will be running the AdGuard Home service on 53 once installed. We need to change the dnsmasq port number to listen on something other than the default 53. Doing this will also make the Adguard Dashboard easier to read as it will display local client names in addition to IP addresses. If you want local name resolution on your lan then change over from the default DHCPD setup to dnsmasq.

using DHCP for IP assignment (including DNS server assignment).using dnsmasq instead of the default DHCPD daemon (for local hostname resolution on my lan).My setup is probably different than your's so substitute settings where needed.

If the edgerouter goes down, the internet will be down anyway so it's a non-issue. In doing this, I reduce the need for extra hardware and remove a point of failure. I have since moved to Adguard Home and offloaded this task to my Ubiquiti Edgerouter X.

Running it this way creates another point of failure, if the Pi goes down so does access to the internet. My pihole ran on a seperate Raspberry Pi board but I never liked this solution, keeping the Pi running just to act as a DNS resolver and blocker. I used to run a pihole on my home network but recently moved to Adguard Home for simplicity.

Adguard raspberry pi 4