Cook the sausage: Heat the butter or oil in a skillet over medium heat. Add the sausage and cook until browned and fully cooked, breaking it into crumbles.
Cook the vegetables: Add the chopped onion and bell peppers. Cook for 3–4 minutes, then drain any excess grease.
Prepare the baking dish: Grease a 9 × 13-inch baking dish. Spread the bread cubes evenly across the bottom.
Add the filling: Distribute the cooked sausage and vegetables over the bread. Sprinkle the shredded cheddar cheese on top.
Whisk the eggs: In a large bowl, whisk together the eggs, milk, Dijon mustard, salt, and black pepper.
Assemble the casserole: Pour the egg mixture evenly over the bread, sausage, vegetables, and cheese.
Chill: Cover and refrigerate for at least 4 hours or overnight.
Preheat the oven: Heat the oven to 350°F (175°C).
Bake: Uncover the casserole and bake for 45–60 minutes, until the center is set and reaches 160°F (71°C).
Rest and serve: Let the casserole rest for 5–10 minutes. Garnish with fresh parsley, slice, and serve warm.