Use a 3-inch cookie cutter to cut a shape out of the bread. Melt the butter in a griddle or frying pan. Place the bread in the pan and break an egg into the hole. Lay the cutout shape in the pan wherever it will fit and toast until golden brown. Sprinkle the egg with salt and pepper.
When the egg is cooked on the bottom and before the bread becomes too brown, flip the egg nest to toast the other side and finish cooking the egg, about 1 minute. Serve with toasted shape.