Cook sausage in a skillet until browned, then drain fat and crumble. Sauté diced onion and bell pepper in the same skillet until softened.

Lightly butter a 9x13 inch baking dish and arrange torn bread pieces evenly on the bottom. Sprinkle the cooked sausage, sautéed onion, and bell pepper over the bread.

In a large bowl, whisk together eggs, milk, salt, pepper, and garlic powder. Pour this mixture evenly over the bread and meat layers, gently pressing down the bread to ensure it absorbs the liquid.

Sprinkle 1 cup of shredded cheddar cheese over the top, then cover and refrigerate for at least 4 hours or overnight.

Preheat oven to 350°F (175°C); remove the casserole from the refrigerator and let it sit for 15-20 minutes.

Uncover and sprinkle the remaining 1 cup of cheese over the top. Bake for 45-55 minutes, or until set and golden brown.

Let the casserole rest for 5-10 minutes before slicing and serving.