Toasters are clearly embedded systems. There are many arguments in support of this notion, but let's keep them simple.
Here's a definition:
An embedded system is a computer system—a combination of a computer processor, computer memory, and input/output peripheral devices—that has a dedicated function within a larger mechanical or electronic system.
Consequently any toaster which does not use analogue systems is an embedded systems. The processor is the system which determines whether the timer has run out, and the memory is the ROM which tells the processor what to do. The input devices are the dials and levers which set and start the timers respectively, and the output is burnt toast.
It would be unreasonable to suggest the idea that a toaster is not an embedded system.