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Wow, and on Thanksgiving I read this! (Hey, I'm catching up after a few days away from the computer, what can I say?) My ex-boyfriend used to make this, as his mom taught him, and he called it "Cataract Toast", because the egg wound up looking fairly opaque. Not an appetizing name, but quite descriptive, don't ya think?! Thanx for bringing back good (believe it or not) memories.
My mom would make these for us when we were kids, she called them "chicken in a basket". I now make this for my children, they love it! I've found that the perfect size hole is the cap of a baby bottle. Not the part that holds the nipple, the actual bottle cover. Great, now I'm craving one and I can't have one because I'm at work.......*tear*
These are typically called egg baskets. I like to toss the cut out circles into the pan and toast them, too. Also, the easiest way to cut the hole in the middle is to take a glass that is about the size of the hole you want and press the open end into the bread and then turn it back and forth a few times to completely cut through the slice. They're really fun and easy to make and were even featured in the film "V for Vendetta."
We call these "cowboy eggs" at my house. The little circle that you cut out is the "hat." If the child wants cheese I ask if they want "chaps." I love how the egg and the toast are like one. You can pick it up and eat it by hand if you are in a hurry.