+1 for Metzinger's ideas. It's pretty much the only theory of consciousness that I've read about that makes any sense.
Here is a little extract for anyone not familiar:
> My first step in this chapter is to introduce the hypothetical notion of a phenomenal self-model (PSM). [...] I will then investigate how a PSM, integrated into a yet more complex, higher-order form of representational content, forms the central necessary condition for a conscious first-person perspective to emerge on the representational as well as on the functional level of description. [...]
> The content of the PSM is the content of the conscious self: your current bodily sensations, your present emotional situation, plus all the contents of your phenomenally experienced cognitive processing. They are constituents of your PSM. Intuitively, and in a certain metaphorical sense, one could even say that you are the content of your PSM. All those properties of yourself, to which you can now direct your attention, form the content of your current PSM. Your self-directed thoughts operate on the current contents of your PSM: they cannot operate on anything else. [...]
> From a logical and epistemological perspective it is helpful to differentiate between simulation and emulation, in order to further enrich the concept of a PSM. We can then, in a second step, conceptually analyze the PSM as a special variant, namely, self-emulation. [...] It is the possibility of reflexive or self-directed emulation that is of particular interest from a philosophical perspective. Self-modeling is that special case, in which the target system and the simulating-emulating system are identical: A self-modeling information-processing system internally and continuously simulates its own observable output as well as it emulates abstract properties of its own internal information processing. [...]
> Using a term from computer science, we could therefore metaphorically describe self-modeling in a conscious agent as “internal user modeling.” In human beings, it is particularly interesting to note how the self-model simultaneously treats the target system “as an object” (e.g., by using proprioceptive feedback in internally simulating ongoing bodily movements) and “as a subject” (e.g., by emulating its own cognitive processing in a way that makes it available for conscious access). This is what “embodiment” means, and what at the same time generates the intuitive roots of the mind-body problem: the human self-model treats the target system as subject and object at the same time. [...]
from Chapter 6 of "Being No One: The Self-Model Theory of Subjectivity" by Thomas Metzinger.
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Also worth looking into are the similar explanations on concisousness-as-self-model (in a simulation generated by our brain) by Joscha Bach. I'm not sure if Bach came to the same perspective independently or he read Metzinger, but he definitely presents his ideas in a more accessible language language (vs. Metzinger's heavy, precise philosophical jargon, which I found heavy to read).
I'd love to find more sources on this (books/talks/papers), or find a place where these ideas are actively discussed.