Heat 2 tbsp olive oil in a large cast-iron skillet over medium-high heat until shimmering. Add the breakfast sausage and cook for 6–8 minutes, breaking it into crumbles until browned and visibly cooked through.

Transfer the browned sausage to a plate, leaving any drippings in the skillet so the potatoes can crisp.

Add the diced baby Yukon Gold potatoes to the skillet and cook for 12–15 minutes, stirring occasionally. Continue until the potatoes are golden brown and fork-tender.

Stir in the diced bell peppers, onion, and minced garlic, along with smoked paprika, garlic powder, onion powder, kosher salt, and black pepper. Cook for 5 minutes until the vegetables soften and turn glossy.

Return the cooked sausage to the skillet and stir everything together so the seasoning coats the mixture evenly.

Make six small wells in the mixture and crack one egg into each well. Keep the eggs centered so they cook without running into the potatoes.

Sprinkle the shredded sharp cheddar cheese over the skillet. Cover and cook over medium-low heat for 5–7 minutes until the egg whites are set and the yolks reach your preferred doneness, indicated by firm whites and yolks that jiggle or set to your liking.

Garnish with chopped green onions and chopped fresh parsley. Serve immediately while the cheese is melted and the potatoes are crisp, with hot sauce on the side if desired.