Preheat oven to 375 degrees F and spray 9 x 13 baking dish with cooking spray. Set aside.
Preheat skillet on medium-high heat, add half of the oil and breakfast sausage. Cook until golden brown or for about 5 minutes, stirring often. Transfer to previously prepared baking dish.
Return skillet to the stove and add remaining oil. Add onion, both bell peppers, 1/4 teaspoon salt and 1/2 teaspoon black pepper. Saute for about 5 minutes or until a bit browned, stirring occasionally. Transfer to the baking dish with sausage and spread everything in a single layer.
In a large mixing bowl, add eggs, cottage cheese, milk, 1/2 cup cheddar cheese, and 1/4 teaspoon salt. Whisk well and pour over sausage and veggies. Stir mixture a bit with a spoon to make peppers float to the top and create color. Sprinkle with remaining 1/4 cup cheddar cheese.
Bake uncovered for 40 minutes. Remove from the oven and let cool for 20 minutes.
Cut into 10 slices and enjoy warm or cold.
Notes
Store: Refrigerate leftovers in an airtight container for up to 5 days.
Freeze: Leftovers for up to 3 months. Thaw on a counter for 4-5 hours or in the fridge overnight. Reheat in a microwave, toaster oven or bake in regular oven at 350 degrees for 15 minutes.
Make ahead: Refrigerate casserole assembled and covered with plastic wrap for up to 2 days. Bring to room temperature on a counter for 30 minutes and bake as per recipe directly from the fridge. It may require extra 10-15 minutes cook time.