Preheat oven to 350°F.: You will notice the oven transforming from cool to a steady warmth that encourages an even bake, which is essential for a set custard and a lightly browned top. Preheating avoids temperature shocks that can cause uneven rising or undercooked centers. A common mistake is placing the casserole into an oven that is still heating, which can lengthen bake time and affect texture.
Spray a 9 x 13" baking dish with cooking spray until coated.: The dish should glisten with a thin, even film so the edges of the casserole release cleanly and the bottom does not stick. This small step prevents tearing when slicing and promotes appealing browned edges against the dish. Over applying can pool and create oily spots, so wipe away any excess if needed.
Crumble the sausage into a large skillet over medium heat. Stir in the onion and bell pepper and cook, stirring often, until the sausage is no longer pink and the vegetables are soft. Set aside to cool for about 15 minutes.: As the breakfast sausage sizzles, it will render golden droplets and fill your kitchen with savory aroma, while the onion and red bell pepper soften and sweeten. Browning the sausage properly deepens flavor through caramelization, and cooking the vegetables until tender ensures they integrate into the custard without crunch. Allowing the mixture to cool prevents the hot filling from starting to set the eggs prematurely, which would create uneven texture. Avoid rushing this step by adding hot meat directly to the eggs, which can scramble them.
Crack the eggs into a large bowl and whisk until lightly beaten. Stir in the half and half, green chilis, 1 teaspoon salt, 1/2 teaspoon black pepper, and the garlic powder. Gently stir in the cooled sausage mixture.: Whisking the eggs and half and half until smooth produces a uniform pale yellow custard that will bake to a silky, tender interior. Adding the seasonings and green chilis at this stage ensures the flavors distribute throughout the custard. Folding in the cooled sausage mixture avoids hot pockets that could change the texture. If you skip cooling, parts of the eggs can begin to coagulate on contact, yielding inconsistent set.
In another large bowl, toss the thawed hash browns with 1 teaspoon salt and 1/2 teaspoon pepper. Press the seasoned hash browns into the bottom of the prepared dish.: Tossing the hash browns with salt and pepper seasons the structural base so every bite is balanced. Pressing them firmly into the dish creates a compact foundation that browns and crisps at the edges, which contrasts nicely with the soft custard above. Make sure the layer is even to avoid thin spots that can overbrown. If the hash browns are too wet, blot them gently to prevent excess moisture pooling during the bake.
Pour the egg and sausage mixture over the tops of the hash browns. Use a large spatula to evenly spread the mixture over the hash browns. Top with the shredded cheese.: When the custard pours over the layered hash browns , you should hear a gentle settling sound as it fills gaps and envelops the base. Spreading it evenly ensures uniform set and prevents high spots that cook faster. The blanket of shredded cheddar cheese melts into a cohesive golden crust that signals doneness. Avoid uneven spreading which can lead to undercooked centers in some areas.
Bake for 45 minutes, until the eggs are set and the top is lightly browned.: During baking, the kitchen will fill with warming aromas as the custard firms and the cheese bubbles and browns. The center should no longer jiggle and a knife inserted near the center will come out mostly clean with a few moist crumbs, indicating perfect set. Overbaking dries the custard, so watch the color and test early if your oven runs hot.
Remove from the oven and allow the casserole to rest for 15 to 20 minutes. Garnish with scallions. Slice and serve at once.: Resting lets steam redistribute so the casserole firms, reducing any watery pockets from the hash browns . The surface will cool slightly, making slicing clean. Sprinkle the sliced scallions for a fresh, bright finish. Cutting too soon often causes the slices to fall apart and release liquid, so patience here improves presentation and texture.