Heat oven to 400 degrees F. Grease rectangular baking dish, 13x9x2 inches. Cook sausage, bell pepper and onion in 10-inch skillet over medium heat, stirring occasionally, until sausage is no longer pink; drain. Stir together sausage mixture, potatoes and 1 1/2 cups of the cheese in baking dish.
Stir Bisquick mix, milk, pepper and eggs until blended. Pour into baking dish.
Bake uncovered 40 to 45 minutes or until knife inserted in center comes out clean. Sprinkle with remaining cheese. Bake 1 to 2 minutes longer or just until cheese is melted. Cool 5 minutes.