Grease a 9x13-inch baking dish. Layer the bread cubes in the bottom of the dish.
Sprinkle crumbled bacon evenly over the bread, then top with 1½ cups of the shredded cheddar cheese. Reserve remaining ½ cup cheese for topping.
In a large mixing bowl, whisk together eggs, milk, sour cream, Dijon mustard, garlic powder, pepper, and salt until smooth and well combined.
Pour the egg mixture evenly over the bread and bacon, making sure to saturate all the bread. Press down gently with a spatula.
Cover tightly with plastic wrap and refrigerate overnight, or at least 4 hours.
To freeze: Wrap the unbaked casserole tightly with plastic wrap and then aluminum foil. Label and freeze for up to 3 months. Thaw completely in refrigerator overnight before baking.
Preheat oven to 350°F. Remove casserole from refrigerator and let sit at room temperature for 15 minutes.
Bake covered with foil for 30 minutes. Remove foil, sprinkle with remaining ½ cup cheese, and bake uncovered for another 20 minutes until golden and the center is set.
Let cool for 10 minutes before slicing. Top with sliced green onions if desired and serve warm.