Next, tile the source 4 times wider then height and also resize canvas to twice as high with embedded alpha channel:
Note the gap between the image and the following steps; it's because the image above has a transparent bottom.
Now run Pan and Bow:
Below's the Pan and Bow result:
Now run Mathmap's Droste preset; not the colored arrows which need to be played with or toggled.
You are done. Result below:
Some additional tricks to try is to add more concentric circles within the larger circle as created by Pan & Bow (i.e., after Pan & Bow step, dup, and shrink the circular result to fit inside the larger circle). Just experiment and have fun. :)