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Preheat oven to 350 degrees F and grease a 9×13-inch baking dish.
In a large skillet over medium heat, add breakfast sausage and onion. Season with chili powder and cumin and cook until meat is fully browned.
In a large bowl, whisk together eggs, milk, salsa, salt, pepper, and garlic powder. Add in the cubed cornbread, 1 ½ cups of the cheese, diced peppers, and browned meat. Stir gently to combine.
Transfer mixture to the prepared baking dish and sprinkle remaining cheese on top.
Bake for 25-30 minutes or until top is beginning to turn golden brown.