Heat oven to 350°F. In large bowl, mix potatoes, soup, sour cream, cheese, onion, salt and pepper. Spoon mixture into ungreased 13x9-inch (3-quart) glass baking dish, spreading evenly.
Arrange bacon slices in pairs over top of potato mixture to resemble eyes. Press bacon into mixture to form deep cups (for eggs). Bake 40 minutes.
Remove baking dish from oven. If necessary, press bacon into mixture to reshape cups. Carefully break 1 egg into each bacon cup.
Bake 20 to 25 minutes longer or just until eggs are set. Decorate eggs with ketchup "veins" to resemble bloodshot eyeballs.