Preheat the oven to 350°F (175°C).
In a large skillet over medium heat, cook the breakfast sausage until browned and fully cooked, breaking it apart with a spatula as it cooks. Drain excess grease and set aside.
In a mixing bowl, combine the softened cream cheese, eggs, and milk. Whisk until smooth.
Stir in the garlic powder, onion powder, salt, and pepper into the egg mixture.
Grease the 9x13 inch baking dish or use cooking spray. Layer half of the cubed bread at the bottom of the dish.
Spread the cooked sausage evenly over the bread, and then add half of the shredded cheddar cheese on top.
Pour half of the egg and cream cheese mixture evenly over the layers.
Repeat with the remaining cubed bread, sausage, cheese, and finish with the rest of the egg mixture.
Bake in the preheated oven for 35-40 minutes or until the casserole is set and the top is golden brown.
Let the casserole cool for a few minutes before slicing. Garnish with fresh parsley if desired.