In the following proof I do not understand why it is assumed that $\{e\}$ is cyclic and why we treat the case $h = \{e\}$ separately.
Let $G$ be a cyclic group generated by $a.$
Let $H$ be a subgroup of $G$.
If $H=\{e\},$ then $H$ is a cyclic group subgroup generated by $e$.
Let $H\neq\{e\}.$
By definition of cyclic group, every element of $G$ has the form $an$.
Then as $H$ is a subgroup of $G, an\in H$ for some $n\in\Bbb Z$.
Let $m$ be the smallest (strictly) positive integer such that $am\in H.$
Consider an arbitrary element $b$ of $H$.
As $H$ is a subgroup of $G, b=an$ for some $n$.
By the Division Theorem, it is possible to find integers $q$ and $r$ such that $n=mq+r$ with $0\le r<m.$
It follows that:
$$an=amq+r=(am)qar$$ and hence:
$$ar=(am)−qan$$
Since $am\in H$ so is its inverse $(am)^{−1}.$
By Group Axiom G0: Closure, so are all powers of its inverse.
Now $an$ and $(am)−q$ are both in $H$, thus so is their product $ar,$ again by Group Axiom G0: Closure.
However:
$m$ was the smallest (strictly) positive integer such that $am\in H$ and:
$$0\le r<m$$ Therefore it follows that:
$$r=0$$ Therefore:
$$n=qm$ and:
$$b=an=(am)q.$$ We conclude that any arbitrary element $b=an$ of $H$ is a power of $am$.
So, by definition, $H=\langle am\rangle$ is cyclic.