Consider the figure below with $B$ as the point of tangency and $AB=BC=4$. Find radius.
My try:
What I did is, at $B$ draw a perpendicular which obviously passes through center of the circle $O$. Now after that I am getting a contradictory radii as shown below.

Since $\Delta OBC$ is $45-45-90$ triangle with $BC=4$, we have radius as $OB=4$. But $\Delta OMD$ is $45-45-90$ too with $OM=MD=4$, so the radius is $4\sqrt{2}$.
Am I missing anything?
Please pardon me for figure being not to scale.

First complete your triangle: the top point is called $D$.
You can find the centre of a circle on the perpendicular bisector of two points, so you define the perpendicular bisector of $BD$. When you put $A$ on coordinate $(0,0)$, $B$ on $(4,0)$ and so on, you find the equation of that perpendicular bisector as:
$y=\frac{x}{2} + 3$
Another line, going through the centre, is the perpendicular line going through $B$, which has the following equation:
$x=4$
Both lines intersect at $(4,5)$, which is the centre of your circle.
The distance between $(4,5)$ and $B$ equals $5$, which is the radius, hence:
$$r=5$$
In a drawing:
It can also be calculated in a purely geometrical way:
Let's consider the two triangles $ABD$ and $FGB$:
=> both triangles are similar.
Due to their similarity, the ratios of their sides are equal:
$\frac{|BD|}{|AD|} = \frac{|GB|}{|FB|}$
Hence:
$$|GB| = \frac{\sqrt{80} \cdot \sqrt{80}}{8 \cdot 2} = \frac{80}{16} = 5$$