Preheat and prep the dish. Heat your oven to 350°F (175°C). Grease a 9x13-inch baking dish with butter.
This helps prevent sticking and adds a little richness.
2 tbsp Butter
Cook the bacon. Chop the bacon into 1-inch pieces and cook in a skillet over medium heat until crisp. Transfer to a paper towel–lined plate. Reserve about 1 tablespoon of the bacon drippings in the skillet for the next step.
8 slices Thick-cut bacon
Soften the vegetables. Add the diced onion and bell pepper to the skillet with the bacon drippings.
Sauté for 4–5 minutes until softened and lightly golden. Turn off the heat and let them cool slightly.
1 Small Diced Yellow Onion, 1 medium diced Bell pepper
Cube the bread. Cut the bread into 1-inch cubes. Day-old bread works best because it soaks up the custard without getting soggy.
If your bread is fresh, you can lightly toast it in the oven for 5–7 minutes.
5 cups Day-old bread
Whisk the custard. In a large bowl, whisk together the eggs, milk, salt, black pepper, garlic powder, and smoked paprika. The mixture should be smooth and well combined.
8 large Eggs, 1.5 cups Milk, 1 tsp Salt, ½ tsp Black Pepper, ½ tsp Garlic Powder, ½ tsp smoked paprika
Assemble the casserole. Add the bread cubes to the greased baking dish. Sprinkle on the sautéed onion and pepper, the crispy bacon, and half of the shredded cheese.
Pour the egg mixture evenly over everything, pressing down gently to help the bread soak up the liquid. Top with the remaining cheese and sliced green onions.
2 cups Shredded cheese, 2 sliced Green onions
Rest or bake. For best texture, let the casserole rest for 15–20 minutes to allow the bread to absorb the custard. If you’re planning ahead, cover and refrigerate it overnight.
Bake. Bake uncovered for 35–45 minutes, until the top is golden, the edges are set, and the center barely jiggles.
A knife inserted in the center should come out mostly clean.
Cool and serve. Let it stand for 5–10 minutes before slicing. This helps it set and makes cleaner pieces. Serve warm.