Roast the peppers by placing them on an open gas flame, turning them frequently with tongs until all sides are charred black, about 7 to 10 minutes. (Alternately, the peppers can be roasted under a broiler, or on top of a gas or charcoal grill.) Place the blackened peppers in a plastic or paper bag, and let rest until cool enough to handle, about 15 minutes. Peel the peppers, split in half lengthwise, and remove the seeds and the stems.
Butter a 9 by 13-inch baking dish. Spread the chiles in a flat layer across the bottom of the dish.
In a large skillet, cook the sausage over medium-high heat, stirring to break up the meat, until browned. Add the onions and bell peppers, and cook, stirring, for 4 minutes. Add the garlic and chili powder, and cook, stirring, for 1 minute. Remove from the heat.
In a large bowl, whisk the eggs and half-and-half with the hot sauce, salt and black pepper.
In another bowl, combine the green onions, cilantro, jack, and cheddar, and mix well.
Spoon 1/3 of the sausage mixture over the chiles in the dish, top with 1/3 of the tortilla quarters, and 1/3 of the grated cheese mixture. Repeat layering, ending with a cheese layer. Pour the egg mixture over the ingredients. Let rest, covered, in the refrigerator for at least 6 hours, or overnight.
Preheat the oven to 350 degrees F.
Bake until bubbly and golden brown, and a knife inserted into the custard comes out clean, about 1 hour and 10 minutes to 1 hour and 15 minutes. Remove from the oven and let rest 10 minutes before serving. Serve with sour cream and picante sauce.