Infinite Tunnel Droste effect I've been looking at videos that create what is called Droste Effect 
where an image contains smaller version of the same image and they spiral ifinitely into each other.

like Escher's Print Gallery



or



I've looked at the math behind this here but I don't know I would deform an image recursively to make it repeat itself endlessly,

There are a few videos creating this effect using a tool called Pixel Bender.

https://www.youtube.com/watch?v=CEauXI6fV2A

https://www.youtube.com/watch?v=9WHdyG9mJaI

https://www.youtube.com/watch?v=jrUFx0f_GR0

How can an image be deformed like on the reference the videos to create an infinite tunnel in blender?
here is a messy node setup that  could be turned into one  python node "I'll try to do that " :
this is the node setup

this is the node-group 

the object index in the node-group should be that of the "object of interest", also the is object is unwrapped before. 


finally here is a quick simple render :


*the UV and ID outputs of the node group are only added to ease hooking up more nodes sequentially