Preheat the oven to 350°F (175°C). Grease a 9x13-inch baking dish with cooking spray or butter.
In a large skillet over medium heat, cook the chopped bacon until crispy. Remove the bacon and drain on paper towels, leaving about 1 tablespoon of bacon grease in the skillet.
In the same skillet, add the diced onion and bell pepper. Sauté for about 5 minutes, or until the vegetables are softened.
In a large bowl, combine the thawed hash browns, cooked bacon, sautéed onion and bell pepper, and 1/2 cup of the shredded cheddar cheese. Mix well and spread the mixture evenly in the prepared baking dish.
In another bowl, whisk together the eggs, milk, salt, black pepper, garlic powder, and paprika until well combined. Pour the egg mixture over the potato mixture in the baking dish.
Sprinkle the remaining 1/2 cup of cheddar cheese on top of the casserole.
Bake in the preheated oven for 45-50 minutes, or until the eggs are set and the top is golden brown. Let it cool for 5-10 minutes before slicing.
Garnish with chopped green onions if desired and serve warm.