I can sizzle like bacon,
I am made with an egg,
I have plenty of backbone, but lack a good leg,
I peel layers like onions, but still remain whole,
I can be long, like a flagpole, yet fit in a hole.
There is a square piece of paper with a hole that is denoted by the circle on the top right side in the given picture. You have to cut the paper in a manner that it forms two and only two separate pieces of paper and then rearrange the pieces in a manner that the holes come in the centre of the paper.