Cook bacon in a large, deep skillet over medium-high heat until evenly browned. Transfer to a paper towel-lined plate and crumble; leave grease in the pan.

Heat bacon grease over medium heat, then stir in butter. Add onion and potatoes. Cover the pan and cook, stirring occasionally, until potatoes are golden brown.

Crack eggs on top of potatoes and stir gently to combine. Sprinkle with salt, pepper, Cheddar, and bacon. Continue cooking until eggs are firm and cheese is melted.