In TOAD 18.104.22.168 it was possible to select cursor as a variable-type when running an anonymous PL/SQL Block.
In TOAD 10.1 this is not possible any more. Cursor is no longer a choice in the variable type dropdown menu.
This issue is fixed in Toad for Oracle 10.5. This version can be downloaded at https://support.quest.com/SUPPORT/index?page=downloads.