Preheat oven to 350°F. Grease a 9x13-inch baking dish with cooking spray or butter.
In a large skillet over medium-high heat, cook turkey sausage, breaking it up with a spoon, until browned and cooked through, about 7-8 minutes. Transfer to a paper towel-lined plate.
In the same skillet, sauté onion and bell pepper until softened, about 5 minutes. Add spinach and cook until wilted, about 2 minutes. Remove from heat.
Spread bread cubes evenly in the prepared baking dish. Top with cooked sausage, sautéed vegetables, and 1½ cups of the shredded cheese.
In a large bowl, whisk together eggs, milk, garlic powder, Italian seasoning, salt, and pepper until well combined.
Pour egg mixture evenly over the bread and sausage mixture. Press down gently with a spatula to ensure everything is soaked.
Sprinkle the remaining ½ cup cheese over the top. Bake uncovered for 45-50 minutes, until the casserole is set in the center and golden brown on top.
Let cool for 10 minutes before serving. Cut into squares and serve warm.
To freeze: Cool completely, then wrap entire casserole (or individual portions) tightly with plastic wrap and aluminum foil. Freeze for up to 3 months. Thaw overnight in refrigerator and reheat at 350°F for 25-30 minutes, or microwave individual portions for 2-3 minutes.