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Encyclopedic overview
The original 1904 Droste cocoa tin, designed by Jan Misset (1861–1931)
The Droste effect ( Dutch pronunciation: [ˈdrɔstə]) is the effect of a picture recursively appearing within itself, in a place where a similar picture would realistically be expected to appear. In art history, the technique is known as mise en abyme. This produces a loop which in theory could go on forever, but in practice only continues as far as the image's resolution allows.
Excerpted from Wikipedia’s “droste effect” article, available under the CC BY-SA 4.0 licence.