Preheat oven to 350ºF. Lightly spray a 9x13-inch pan with cooking spray.
In a large skillet, cook sausage until no longer pink. Drain some of the fat.
In a large bowl, toss together tater tots, cooked sausage, diced green bell pepper, diced red bell pepper, diced onion, diced shallot, diced jalapeno (optional for heat), and cheeses. Pour into a lightly greased 9x13-inch pan.
Whisk together eggs, salt, pepper, garlic powder, onion powder, and milk. Pour over the tater tot mixture.
Cover and refrigerate at this point if baking later.
Bake uncovered for 60 - 70 minutes, or until eggs are set.