If you actually want your inner shape to act as a cutout, and you don't want to have to redraw it, there is a way to fix things. Your shape will now act as a cutout. If you move your cursor down to that entry an new menu expands out. Redoes whatever you last undid. Multiple redo's are possible.
Nodes turn black when selected with the cursor.
You can select multiple nodes either by left clicking your mouse and dragging to make a rectangular selection, or by clicking on a node with your mouse and then clicking on additional nodes while holding down the shift key. Pastes whatever nodes you most recently copied. It is possible to paste nodes into a vector shape that have been copied from another vector shape. The nodes you paste will be selected when you first paste them and may be moved as a unit by left clicking on one of the nodes and dragging them to where you want them. In the figure directly above I selected only two nodes of the circle, but by doing so I copied the whole circle, so that's what I got when I pasted.