01 - Preheat your oven to 350°F (175°C). Lightly grease a 9x13-inch baking dish.
02 - In a skillet over medium heat, cook the bacon until it reaches desired crispness. Transfer the cooked bacon to a plate lined with paper towels to drain. Once cooled, crumble or chop the bacon into small pieces.
03 - Drain most of the bacon fat from the skillet, leaving about 1 tablespoon. Add the finely chopped onion and diced red bell pepper (if using) to the skillet. Sauté until the vegetables have softened, approximately 3–4 minutes.
04 - In a large mixing bowl, whisk together the eggs, milk, salt, black pepper, and garlic powder until thoroughly combined.
05 - Add the cubed day-old bread, sautéed vegetables, half of the shredded cheddar cheese, and most of the crumbled bacon to the egg mixture. Stir gently until all ingredients are evenly distributed.
06 - Pour the assembled mixture into the prepared baking dish. Evenly distribute the remaining shredded cheese and crumbled bacon over the top.
07 - Bake for 40–45 minutes, or until the egg mixture is set and the top of the casserole is golden brown.
08 - Allow the casserole to cool for 5–10 minutes before serving. If desired, garnish with chopped fresh chives or parsley. Slice and serve warm.