The cloze plugin add-on for TinyMCE is available at https://moodle.org/plugins/view.php?plugin=tinymce_clozeeditor for Moodle branches 1.9 and 2.x.
It even works in Moodle 2.7 provided that you choose TinyMCE as your default (profile) personal (or site default) text editor.
I think this add-on makes writing Cloze question types very easy, fast and rather syntax-error-free for most/many/some teachers
Unfortunately, the main developer no longer has the resources to adapt it to the new Atto editor . Any volunteers?
Some people have suggested that this add-on might be a good idea for inclusion in future core branches. After all, writing good questions is a basic need in Moodle and question types add-ons are a very well developed moodle expansion.