Can anyone give me any info on this penny...it's larger than a normal penny...looks like steel but won't attract a magnet...
Unfortunately, it is nearly impossible to properly assist you without photos, and is because there are a number of possibilities that could fit your description. It could be anything from some sort of novelty, to a real cent that has been placed under pressure between leather, and everything in between. Welcome to the forum, sassyclassylady!
It is probably aluminum or other non-steel cent made for a novelty or cash register toy, best guess without more to go one. Photo it with a regular cent next to it, and if you have a scale, weight.
It is an altered cent. It can be done a couple of ways, by heat or by placing between two pieces of a softer material like leather and pounding it out. Sometimes called a "Texas" cent.