Brush on a light coating of glue around the entire terracotta pot inside and out to seal it. Terracotta is highly porous and absorbent, so sealing it is the only way to prevent water from seeping into and out of it.
Put on safety gear and prepare the work area. Remove all items nearby so you do not risk breaking anything. Place newspaper across the surface you are working on to protect the work surface and keep glass shards contained.
Put a few pieces of stained glass on the newspaper and cover the glass with a towel. Begin hitting the glass with the mallet to break it up into smaller pieces. Gently tap the glass in various spots so you do not break the same piece of glass into pieces that are too small.
Apply adhesive to the terracotta pot using a paintbrush so the glass pieces will stick to the pot. Paint a thin layer of adhesive around the entire outside of the pot.
Begin placing the broken glass pieces onto the pot, using any deign you choose. Let it set overnight so the glass pieces do not shift when grouting.
Fill the cracks between the pieces with grout, applying the grout with a soft sponge. Remove excess grout that's gotten on the glass or has overflowed a crack by dampening a towel and gently wiping the grout off of the surface.
Allow 24 to 48 hours for the pot to dry fully before using it.