The nonlinear evolution of dust waves generated by a low-frequency Hall current instability in a magnetized collisional dusty plasma is investigated with theory and nonlinear numerical simulations. This instability is believed to have broad applications to irregularity production in regions where dust is present in the earth's ionosphere such as noctilucent clouds and meteor trails. The instability is driven by an electron $\ vec{E} times vec{B}$ current and is an analog, in the dust acoustic type wave regime, of the well-known Farley-Buneman instability. The results indicate that the instability nonlinearly saturates with dust heating and the production of secondary waves that propagate in a direction perpendicular to the primary dust acoustic type waves.