Combine the first 8 ingredients in a skillet. Cook until meat is browned, stirring until it crumbles. Drain the grease from the skillet. Stir in salsa. Set aside.
Place half the tortillas in the bottome of an ungreased 11 x 7 x 2 inch baking dish. Spread half the meat mixture over the tortillas. Place half the green chile strips over the meat mixture. Sprinkle with 1 cup of the cheese. Repeat the layers once.
Combine eggs and milk. Pour egg mixture over the baking dish. Bake, uncovered, at 350 degrees for 40 to 45 minutes or until eggs are set and lightly browned. Let stand 5 minutes before serving.