Step 1: Writing the general equation of the circle.
Since the centre lies on the line $y = 8$, let the centre be $(h, 8)$.
As the circle touches the $x$-axis, its radius is $8$.
\[
(x - h)^2 + (y - 8)^2 = 64
\]
Step 2: Differentiating with respect to $x$.
\[
2(x - h) + 2(y - 8)\frac{dy}{dx} = 0
\]
\[
x - h = -(y - 8)\frac{dy}{dx}
\]
Step 3: Eliminating the parameter $h$.
Substitute $(x - h)$ into the original equation:
\[
(y - 8)^2\left[1 + \left(\frac{dy}{dx}\right)^2\right] = 64
\]
Step 4: Conclusion.
The required differential equation is
\[
(y - 8)^2\left[1 + \left(\frac{dy}{dx}\right)^2\right] = 64
\]