Use a glass, cookie cutter, or knife to cut a circular hole (about 2.5-3 inches across) in the center of the bread slice. Set both the slice and the cut-out aside.

Heat a nonstick or cast-iron pan over medium heat, or place it over indirect heat on a campfire. Melt the butter, seasoning it with spices like smoked paprika if desired.

Place the bread slice and cut-out in the pan. Lightly toast each side for about a minute.

Crack the egg into the hole in the bread, ensuring the yolk stays centered. Season with salt and pepper.

Cook for 2-3 minutes, allowing the egg white to set. Then, carefully flip the bread and egg to cook the other side for an additional 20-30 seconds (or longer, depending on your preferred yolk consistency).

Optional: Sprinkle shredded cheese over the egg and bread after flipping, and cover the pan to melt the cheese.

Serve immediately, garnished with fresh herbs if desired, and enjoy the toasted cut-out as a dipper.