This hearty Tex-Mex delight layers seasoned sausage, corn tortillas, plenty of Monterey Jack cheese, and zesty Hatch green chiles (with optional pickled jalapeños for a kick). It's the perfect overnight casserole for busy ranch mornings, holiday brunches, or when company's coming—simply prep the night before, bake, and enjoy a stress-free, flavorful start to the day that brings together the best of New Mexico and Texas tastes.
Prep your baking dish: Lightly spray a 9×13-inch baking pan with nonstick cooking spray and set it aside. This keeps everything from sticking and makes cleanup a breeze.
Cook the sausage mixture: In a large skillet over medium heat, cook the sausage and diced onions together until the sausage is nicely browned and the onions are soft and translucent. Stir in the chili powder, mixing well to distribute the flavor, then remove the skillet from the heat. (Drain any excess grease if needed for a lighter version.)
Layer the casserole: Start building those delicious layers in your prepared pan:1. Spread ½ cup of the green chile sauce (or 505 Southwestern Green Chile) evenly over the bottom.2. Sprinkle on one-third of the sausage-onion mixture.3. Arrange half of the cut corn tortilla pieces over the sausage.Sprinkle with 1 cup of shredded Monterey Jack cheese. 4. Repeat the layers once more: another ½ cup green chile (if using more), another third of the sausage mixture, the remaining tortilla pieces, and another 1 cup of cheese.
Finish the top layer: Add the final third of the sausage mixture, the remaining ½ cup of green chile sauce, and finish with the last 1 cup of shredded cheese on top. Your casserole should be beautifully layered and ready for the egg mixture.
Make the egg custard: In a large bowl, whisk together the eggs, milk, salt, and black pepper until well combined and slightly frothy. Gently and evenly pour this mixture over the entire casserole, making sure it soaks down into all the layers.
Refrigerate overnight: Cover the pan tightly with plastic wrap or foil and refrigerate for at least 6 hours, or preferably overnight. This make-ahead step lets all the flavors meld beautifully and gives you a stress-free morning.
Bake the casserole: When ready to bake, remove the casserole from the refrigerator and let it sit on the counter for about 1 hour to come to room temperature. Preheat your oven to 350°F. Bake uncovered for the first 50 minutes, then cover loosely with foil for the last 30 minutes (total baking time about 80 minutes) to prevent the top from over-browning. The casserole is done when the eggs are set and the center is hot.
Rest and serve: Remove from the oven and let it stand for 10 minutes before slicing. This helps it hold together nicely for clean portions.