Press a 2-inch hole in the middle of the bread using the bottom of a measuring cup. Butter the bread on both sides.
Crack the egg into the pressed in circle and cook for 6-7 minutes. You may need a minute or two more or less depending on how runny you like your egg.
Add the shredded cheese during the last 2 minutes of cooking time.
Notes
Note: When making eggs in a hole in a frying pan, a circle is cut out of the bread. In the air fryer the bread needs to stay in tact to hold the egg so we press and indent instead of cutting hole.Check your egg early as appliances can vary. The egg will still continue to cook a little bit once removed from the air fryer.