Growing up my parents would make this a lot for breakfast. I love it, especially with a runny yoke. The yoke tastes like butter for the bread.
Lightly butter skillet. Cut a hole out of a piece of bread with a small cup. Put the bread in the skillet and crack an egg in the middle. Season with salt and pepper. Cook on both sides. You can also cook the small circular bread in the skillet when you are done cooking the egg in a hole. Enjoy.