Prep the bread. Use a thick slice—about 3/4 inch.
Cut a round hole in the center using a biscuit cutter or the rim of a small glass (2–2.5 inches wide). Save the cut-out; you’ll toast it too.
Stuff with cheese. Make a horizontal slit in the bread slice to form a pocket, leaving the edges intact. Tuck in a thin layer of cheese.
Don’t overstuff—too much cheese can ooze out and burn. Aim for 1–2 tablespoons per slice.
Heat the pan. Place a nonstick or cast-iron skillet over medium heat. Add 1 tablespoon butter and let it melt and foam.
Toast the first side. Add the stuffed bread and the cut-out piece.
Cook 1–2 minutes until the underside is golden. This helps seal the pocket and start melting the cheese.
Flip and create the nest. Flip the bread. Add a small pat of butter to the hole to prevent sticking.
Crack an egg into a small bowl, then slide it into the hole. Sprinkle with salt and pepper.
Cook the egg to your liking. For a runny yolk, cook 2–3 minutes. For medium or set yolks, reduce heat to medium-low and cook 4–5 minutes.
You can cover the pan for the last minute to help the top set without over-browning the bottom.
Toast the cut-out. Flip the small cut-out piece as needed so it crisps on both sides. It makes a perfect dipper for the yolk.
Optional add-ins. If using finishing touches like scallions, bacon bits, or a pinch of chili flakes, sprinkle them over the egg as it cooks.
Serve hot. Slide everything onto a plate. Add a final grind of pepper or a pinch of flaky salt.
Eat right away for the best texture and cheese pull.