In a frying pan over medium heat, remove casing from the sausages and cook while breaking up with a wooden spoon until browned, about 6-7 minutes. Remove the ground sausage from the pan and pat down well with some paper towel to get rid of excess grease.
In the same pan, cook the peppers for about 5-6 minutes or until softened. Pat with paper towel to absorb extra moisture.
In a medium-sized bowl, beat eggs with milk, dry mustard, salt, and pepper.
Spray a 9 x 13 inch casserole dish with cooking spray.
Distribute cooked sausage meat and cubed bread evenly across the bottom of the dish. Next, evenly spread the sliced peppers on top of the sausage and bread, tucking some under the bread. Pour the egg mixture over the sausage, bread and peppers. Top with shredded cheese.
Allow casserole mixture to sit in the fridge for at least 2 hours or overnight.
When ready to bake, preheat oven to 350 degrees F. Bake for 60-80 minutes or until egg is set when you cut into it and casserole is slightly browned on the top. Allow casserole to cool for at least 10 minutes to allow it to set.