Question

What type of energy transfer is taking place as the coils in a toaster heat?

Answer 1

Conduction

Because

When operating in this mode, heat is transferred between two entities that are really in contact.

Answer 2

Answer: A toaster uses infrared radiation to heat a piece of bread (see How Thermoses Work for information on infrared radiation). When you put your bread in and see the coils glow red, the coils are producing infrared radiation.