Preheat Your Oven: Preheat your oven to 350°F (175°C). Grease a 9x13 inch baking dish with cooking spray or butter.
Cook the Sausage: In a large skillet, cook the breakfast sausage over medium heat until fully cooked and browned. Drain any excess grease.
Prepare the Veggies: Add the diced bell peppers and onion to the skillet. Sauté until they are softened, about 5 minutes.
Mix the Eggs and Milk: In a large mixing bowl, whisk together the eggs and milk until well blended.
Combine Ingredients: Add the cooked sausage, sautéed vegetables, hash browns, 2 cups of shredded cheese, salt, black pepper, garlic powder, onion powder, paprika, and dried parsley to the egg mixture. Stir until everything is well combined.
Pour into Baking Dish: Pour the mixture into the prepared baking dish, spreading it evenly. Sprinkle the remaining 1 cup of cheddar cheese on top.
Bake: Place the dish in the preheated oven and bake for 45-50 minutes, or until the casserole is set and the top is golden brown.
Cool and Serve: Allow the casserole to cool for about 10 minutes before slicing and serving. Enjoy!