Melt margarine in 12-inch nonstick skillet over medium heat. Add onion and bell pepper; cook and stir 2 minutes.
Add potatoes. Sprinkle with seasoned salt and pepper; mix well. Spread mixture evenly and firmly in skillet. Cover; cook over medium heat for 6 to 8 minutes or until golden brown on bottom.
Stir potatoes; press evenly and firmly in skillet. Cover; cook an additional 4 to 6 minutes or until golden brown on bottom. Stir again if necessary. Cook until potatoes are cooked and mostly golden brown. Sprinkle with cheese. Cover; let stand 1 to 2 minutes or until cheese melts.