Put the bread in the pan on medium/high heat for about a minute each side.
Crack the egg into the hole in the bread and turn until egg is cooked.
*The following are optional!*.
While the egg is cooking you can sprinkle on the cheese. I like the cheese kind of crispy so I put it on almost right after I crack the egg. If you'd like the cheese a little more runny you should probably wait until it's almost done or even after you take it off the heat.
You can toast and/or butter the bread lightly before cooking if you'd like but it's tasty either way.