Methods and systems are provided for a single heat exchanger coupled to a main exhaust passage upstream of one or more exhaust catalysts or in between two exhaust catalysts for exhaust heat recovery and exhaust gas recirculation (EGR) cooling. In one example, in the pre-catalyst configuration of the heat exchanger, during exhaust heat recovery, a portion of exhaust may be routed via the heat exchanger while the remaining portion of exhaust may be routed directly to the exhaust catalysts, and fueling may be adjusted on a per-cylinder basis to maintain a target exhaust air-fuel-ratio at the exhaust catalysts.