Step 1

Preheat oven to 350°F. Lightly coat a 9-by-13-inch baking dish with cooking spray. Heat 2 teaspoons oil in a large nonstick skillet over medium-high heat. Add sausage; cook, stirring and breaking up the meat with a wooden spoon, until browned, 5 to 6 minutes. Transfer to a paper-towel-lined plate. Do not wipe the skillet clean.

Step 2

Add the remaining 1 teaspoon oil to the skillet; heat over medium-high heat. Add onion and bell pepper; cook, stirring occasionally, until tender, about 7 minutes. Add garlic; cook, stirring often, until fragrant, about 1 minute. Add the vegetables to the reserved sausage.

Step 3

Whisk eggs, milk, chili powder, cayenne and pepper in a large bowl. Add the sausage-vegetable mixture; stir until combined. Pour into the prepared baking dish. Top evenly with potato tots, arranging them in a single layer. Sprinkle with cheese.

Step 4

Bake until the casserole is set and the cheese is golden brown, 40 to 45 minutes. Let stand for 10 minutes. Sprinkle with chives before serving.