Preheat your oven to 350°F (175°C).

In a large skillet, cook the crumbled breakfast sausage over medium heat for 5-7 minutes until browned. Drain excess fat.

Add diced bell peppers and onion to the skillet and sauté for 3-4 minutes until softened. Remove from heat and let cool slightly.

In a mixing bowl, whisk together eggs and milk until smooth. Add salt, pepper, garlic powder, and onion powder, and mix well.

In a greased 9x13 inch baking dish, layer cubed bread, followed by the sausage and vegetable mixture, and half of the cheddar cheese.

Pour the egg mixture evenly over the layers, ensuring all bread is soaked. Top with remaining cheddar cheese.

Cover with aluminum foil and bake for 30 minutes. Remove foil and bake for an additional 15-20 minutes until set and golden.

Let cool for a few minutes before slicing into squares and serving warm.