Not that I don't know what to do, I actually looked at Telltale's walkthrough just to make sure.
I've given Wallace his honey and egg, but Grommit flatly refuses to part with the toast when trying to give it to Wallace. The walkthrough doesn't go into more detail just:
Take the breakfast items back to Wallace in the dining room and give them to him, one by one.
I'd guess there's a bug acting up.