Heat oven to 350°F. Spray 13x9-inch (3-quart) glass baking dish with nonstick cooking spray.
In large nonstick skillet, combine sausage, onion and bell pepper; cook over medium-high heat for 5 to 7 minutes or until sausage is no longer pink and vegetables are tender, stirring occasionally.
In large bowl, combine sour cream, milk and seasoned salt; mix well. Add potatoes, sausage mixture and half of the cheese; stir to combine. Spoon into sprayed baking dish. Cover with foil.
Bake at 350°F. for 1 hour. Uncover; sprinkle with remaining half of cheese. Bake an additional 15 to 20 minutes or until cheese is melted and potatoes are lightly browned. Cut into squares to serve.