Preheat oven to 350°. In a large skillet, brown sausage. Drain sausage, discarding drippings. Meanwhile, in a small saucepan, heat milk over medium heat until bubbles form around sides of pan. In a large bowl, combine sausage, milk and remaining ingredients., Transfer to a greased 2-qt. baking dish. Cover and bake until lightly browned, about 40 minutes.