Re: medium flopped flush, how do I manage risk vs. reward?
I would re-raise this to the pot, which is to say make it $16 to go (with $8 in the pot and $4 to call, so a raise of $12 more). This way he is not getting odds to another diamond, and you have more to bet with on the turn ($25 into a $35 pot is over 2/3, instead of the less than 1/2 that your turn is).
It also means you lose less if a diamond comes on the turn, and you are sure he has one, and can get away from the hand (although you might be committed anyway).
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