Everyone has a name for this dish. Granny calls it Egg in a Frame. She saw a recipe in an old cookbook and it instantly became one of her favorite breakfast meals. She said her Mama Melvin would send Papa to the store for bread so she could make it for Granny.
I've also heard it called Egg in the Hole, Toad in the Hole, Bulls Eye...it goes on and on. Nana calls this Rabbit in the Hole, so that's what we call it.
The trick is to make sure the hole is large enough to accommodate the egg. Here's what you do:
Rabbit in the Hole
Heat a skillet over medium heat. Spray with nonstick cooking spray. Add a tiny bit of butter, about 1/4 tsp of butter into the pan. Using a cookie cutter, biscuit cutter or glass, cut a hole in a slice of bread and place it in the pan, along with the cut out. Crack an egg into a cup or measure cup (to easily pour into the hole) and when the bread looks slightly toasted, add 1/4 tsp of butter in the hole and pour the egg into the hole. Allow to set up for about 30 seconds to 1 minute and then carefully flip. Brown on the other side and top with cheese.