As a student I will throw my two cents in.

At times my instructor takes the plane up two or three mistakes high, and puts in into some funky position and says "you have control recover it" . I love this because I know I am at a safe altitude and it gives me a chance to learn how to recover and get the plane corrected without feeling stupid for putting in that position in the first place. I think this also helps my instructor better understand how well my skill is progressing for when I get into a little bind at a lower level.

For example yesterday I had a dead stick, he asked if I wanted to bring it in, I said yes. I turned toward the runway with a little too much altitude, but I handled it and brought it down on the runway safely and softly. Afterwards he said, you were running out of runway and I was going to take it over, but felt you could handle it. I am glad he did let me handle it because it boosted my confidence to make a safe dead stick landing (first), but I would have been fine if he decided to take it at the last minute too.

He also reminds me each day that during take offs and landings, his ability to jump in and successfully correct if needed is significantly less than higher altitudes and that I need to remember that.

Lastly it has been helpful to me that my instructor has repeatedly points out that I can cut my throttle back if I get into a bind to buy a few extra seconds. Of course there are some times that this wouldn't be appropriate, but it is very helpful when when I get a little out of whack doing a high roll or an immelmann, etc. It just makes it easier for me.