Activate Recurring Nightmare by sacrificing a creature and returning it from the battlefield to your hand, returning Deranged Hermit from your graveyard to the battlefield.
When Deranged Hermit enters the battlefield, it triggers, creating four 1/1 Squirrel creature tokens.
Activate Phyrexian Altar three times by sacrificing Deranged Hermit and two Squirrels, adding 2.
Cast Recurring Nightmare by paying 2.
Repeat.
This vicious loop turns the natural circle of life into an engine of endless power by cycling Deranged Hermit back and forth from the graveyard. Each time the Hermit returns, its entrance floods the board with Squirrel tokens that instantly receive a +1/+1 buff, providing a ready-made supply of sacrificial fuel. Phyrexian Altar immediately converts those sacrifices into the exact black mana needed to recast Recurring Nightmare, which simultaneously extracts its own cost from the battlefield and loops the Hermit back into play.