I'm not crazy. My mother had me tested.
If a card effect makes you discard this card, you may return this card to your hand. (4 atk points)
So does this mean if I play unending energy then play Optic Blast Cyclops (which I must discard a card to use it) can I discard Unending energy and return it to my hand allowing me to effectively play it twice for a total of 8 atk points?
.....or does it basically discard from my hand and return to my hand so I can use Optic Blast without needed to actually permenently discard a card?
Once you play it you can no longer discard it so your second thought is the correct one. Discard it from your hand and then return it to your hand.