Preheat the oven to 350°F. Grease a 9x13-inch baking dish.
In a large skillet over medium heat, cook the sausage, breaking it up with a wooden spoon, until browned and cooked through (about 5-7 minutes).
Add the diced onion and bell pepper to the skillet. Cook for an additional 3-4 minutes until vegetables are softened. Remove from heat and let cool slightly.
In a large bowl, whisk together eggs, milk, thyme, garlic powder, salt, and pepper.
Add the bread cubes to the prepared baking dish. Top with the sausage mixture and 1 1/2 cups of the shredded cheese.
Pour the egg mixture evenly over the bread and sausage, ensuring all bread cubes are moistened.
Sprinkle the remaining 1/2 cup of cheese over the top.
Bake for 45-50 minutes, or until the casserole is set and golden brown on top.
Remove from the oven and let cool for 5-10 minutes before serving.
Garnish with chopped fresh chives before serving. Enjoy!
Notes
Prepare the casserole the night before, cover, and refrigerate. In the morning, let it sit at room temperature for 30 minutes before baking.Bread choice: Use a hearty bread like sourdough or French bread. Day-old bread works best as it absorbs the egg mixture without becoming too soggy.