A Burning Smell

What's that burning smell? I'm boiling eggs, not running a chemical plan here...
I walk down to the kitchen to see that my eggs aren't the only items in the kitchen receiving heat.
Also on the stove is the handle of one of the frying pans.
The worst thing is that this isn't the first time it happens. My roommate did exactly the same thing a couple of weeks ago, resulting in a stench that wouldn't leave the house for a couple of days.
Luckily I saved this pan before it was destroyed, but the smell of burnt plastic still lingers.