Preheat the oven: Set to 350°F (175°C).
Grease a 9x13-inch baking dish with cooking spray or a light coat of butter.
Cook the sausage: In a large skillet over medium heat, cook the sausage, breaking it into crumbles, until browned and cooked through, 6–8 minutes. Drain excess fat if needed.
Sauté aromatics: Add the chopped onion (and bell pepper, if using) to the skillet. Cook 3–4 minutes until softened.
Season lightly with salt and pepper.
Layer the filling: Spread the sausage mixture evenly in the prepared baking dish. Sprinkle 1 1/2 cups of the shredded cheddar over the top.
Mix the batter: In a large bowl, whisk together the eggs, milk, Bisquick, salt, pepper, garlic powder, and paprika until smooth. A few small lumps are fine.
Pour and top: Pour the batter evenly over the sausage and cheese.
Sprinkle the remaining 1/2 cup cheddar on top for a golden crust.
Bake: Place the dish on the center rack and bake 35–45 minutes, until the top is set and lightly browned. A knife inserted in the center should come out clean, and the middle should no longer jiggle.
Rest and serve: Let it rest 10 minutes before slicing. This helps it set and makes cleaner cuts.
Serve warm.