On 17x12-inch half-sheet pan, place bread cubes. Let stand uncovered 8 hours to dry.
In large bowl, mix milk, eggs and 1 tablespoon oregano. Add bread to egg mixture, stirring to coat. Cover; refrigerate 1 hour.
Heat oven to 350°F. Lightly grease 13x9-inch (3-quart) glass baking dish with cooking spray. In 12-inch skillet, cook sausage, onion and bell pepper 8 minutes, stirring frequently, until sausage is no longer pink. Drain.
Add sausage mixture and 1 cup of the cheese to bread mixture, stirring well. Pour into baking dish; sprinkle with remaining 1 cup cheese.
Bake 40 to 45 minutes or until center is set and cheese is bubbly. Let stand 10 minutes. Sprinkle with additional oregano.