Most electrophotographic printers use periodic, clustered-dot screening for rendering smooth and stable prints. However, when used for color printing, this approach suffers from the problem of periodic moire resulting from interference between the periodic halftones of individual color planes. There has been proposed an approach, called CLU-DBS for stochastic, clustered-dot halftoning and screen design based on direct binary search. We propose a methodology to embed a printer model within this halftoning algorithm to account for dot-gain and dot-loss effects. Without accounting for these effects, the printed image will not have the appearance predicted by the halftoning algorithm. We incorporate a measurement-based stochastic model for dot interactions of an electro-photographic printer within the iterative CLU-DBS binary halftoning algorithm. The stochastic model developed is based on microscopic absorptance and variance measurements. The experimental results show that electrophotography-model based stochastic clustered dot halftoning improves the homogeneity and reduces the graininess of printed halftone images.