[proofplan]
We compare the two relevant $\varepsilon$-$\delta$ conditions. Continuity at $a$ controls $|f(x)-f(a)|$ for every $x \in E$ sufficiently close to $a$, including $x=a$. The punctured limit controls the same quantity only for $x \in E$ with $x \ne a$. Thus continuity immediately implies the limit, while the converse follows by treating the case $x=a$ separately, where the difference is exactly zero.
[/proofplan]
[step:Unpack continuity and the punctured limit through $E$]
The assertion that $f$ is continuous at $a$ means that for every $\varepsilon > 0$ there exists $\delta > 0$ such that, for every $x \in E$,
\begin{align*}
|x-a| < \delta \implies |f(x)-f(a)| < \varepsilon.
\end{align*}
The assertion
\begin{align*}
\lim_{\substack{x \to a, x \in E \setminus \{a\}}} f(x) = f(a)
\end{align*}
means that for every $\varepsilon > 0$ there exists $\delta > 0$ such that, for every $x \in E$,
\begin{align*}
0 < |x-a| < \delta \implies |f(x)-f(a)| < \varepsilon.
\end{align*}
The hypothesis that $a$ is not isolated in $E$ ensures that this punctured approach to $a$ through $E$ is a genuine local limiting condition rather than a condition over an eventually empty punctured neighbourhood.
[/step]
[step:Restrict the continuity estimate to punctured points]
Assume that $f$ is continuous at $a$. Let $\varepsilon > 0$ be given. By continuity at $a$, choose $\delta > 0$ such that, for every $x \in E$,
\begin{align*}
|x-a| < \delta \implies |f(x)-f(a)| < \varepsilon.
\end{align*}
If $x \in E$ satisfies $0 < |x-a| < \delta$, then in particular $|x-a| < \delta$, so the same implication gives
\begin{align*}
|f(x)-f(a)| < \varepsilon.
\end{align*}
Therefore
\begin{align*}
\lim_{\substack{x \to a, x \in E \setminus \{a\}}} f(x) = f(a).
\end{align*}
[guided]
Assume that $f$ is continuous at $a$. To prove the punctured limit statement, we must verify its $\varepsilon$-$\delta$ definition. Let $\varepsilon > 0$ be arbitrary. Continuity at $a$ gives a number $\delta > 0$ such that every point $x \in E$ with $|x-a| < \delta$ satisfies
\begin{align*}
|f(x)-f(a)| < \varepsilon.
\end{align*}
The punctured limit asks for the same inequality only under the stronger hypothesis $0 < |x-a| < \delta$. Since $0 < |x-a| < \delta$ implies $|x-a| < \delta$, the continuity estimate applies directly. Hence, for every $x \in E$ satisfying $0 < |x-a| < \delta$, we have
\begin{align*}
|f(x)-f(a)| < \varepsilon.
\end{align*}
This is exactly the definition of
\begin{align*}
\lim_{\substack{x \to a, x \in E \setminus \{a\}}} f(x) = f(a).
\end{align*}
[/guided]
[/step]
[step:Recover continuity by handling the point $x=a$ separately]
Assume that
\begin{align*}
\lim_{\substack{x \to a, x \in E \setminus \{a\}}} f(x) = f(a).
\end{align*}
Let $\varepsilon > 0$ be given. By the punctured limit condition, choose $\delta > 0$ such that, for every $x \in E$,
\begin{align*}
0 < |x-a| < \delta \implies |f(x)-f(a)| < \varepsilon.
\end{align*}
Now let $x \in E$ satisfy $|x-a| < \delta$. If $x \ne a$, then $0 < |x-a| < \delta$, so the punctured limit estimate gives
\begin{align*}
|f(x)-f(a)| < \varepsilon.
\end{align*}
If $x=a$, then
\begin{align*}
|f(x)-f(a)| = |f(a)-f(a)| = 0 < \varepsilon.
\end{align*}
Thus, for every $x \in E$,
\begin{align*}
|x-a| < \delta \implies |f(x)-f(a)| < \varepsilon.
\end{align*}
Since $\varepsilon > 0$ was arbitrary, $f$ is continuous at $a$.
[/step]
[step:Conclude the equivalence]
The first implication proves that continuity of $f$ at $a$ implies agreement with the punctured limit through $E$. The second implication proves that agreement with the punctured limit through $E$ implies continuity of $f$ at $a$. Therefore $f$ is continuous at $a$ if and only if
\begin{align*}
\lim_{\substack{x \to a, x \in E \setminus \{a\}}} f(x) = f(a).
\end{align*}
[/step]