It looks like a hollowed-out baked potato, but it's actually a German cat cave. Meet the katzenhohle. They are hand-made, according to ModernCat, and can be purchased at Germany's equivalent of Etsy, the crafting site DaWanda. I'm guessing that the cats rather enjoy these katzenhohle.
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They are remarkable in many ways, not the least of which is that the cat sleeps inside a contraption that looks a whole lot like something the cat threw up.