Heat a non-stick skillet over medium heat and add the butter. Allow it to melt and coat the bottom of the skillet.
While the butter is melting, use a round cookie cutter or the rim of a glass to cut a hole in the center of each slice of bread.
Place the bread slices in the skillet and crack an egg into the hole of each slice.
Sprinkle salt, pepper, and garlic powder (if using) over the eggs.
Cook for about 2-3 minutes, or until the egg whites are set but the yolks are still runny.
Carefully flip the bread slices and cook for another 1-2 minutes, then sprinkle the shredded cheddar cheese on top.
Cover the skillet with a lid and let it cook for an additional minute, or until the cheese is melted.
Remove from the skillet and garnish with fresh herbs if desired. Serve immediately.