Grease a 9x13 inch baking dish with butter or cooking spray.
In a large skillet over medium-high heat, brown the sausage, breaking it into crumbles as it cooks, until no longer pink, about 5-7 minutes. Drain excess fat if necessary.
Spread half of the bread cubes in an even layer in the prepared baking dish.
Top with half of the browned sausage and 1 cup of the shredded cheese.
Add the remaining bread cubes in an even layer, followed by the remaining sausage.
In a large mixing bowl, whisk together the eggs, milk, half-and-half, dry mustard, salt, pepper, garlic powder, onion powder, paprika, and chives until well combined.
Pour the egg mixture evenly over the layers in the baking dish. Press down gently with a spatula to ensure all bread pieces are moistened.
Sprinkle the remaining 1 cup of cheese over the top.
Cover with plastic wrap and refrigerate for at least 8 hours or overnight. This resting time is crucial for the bread to absorb the egg mixture.
When ready to bake, preheat your oven to 350°F (175°C). Remove the casserole from the refrigerator while the oven preheats.
Bake uncovered for 45-55 minutes until the center is set and the top is golden brown. If the top starts to brown too quickly, cover loosely with aluminum foil.
Let the casserole rest for 10 minutes before cutting into squares. Garnish with additional chives or green onions before serving.
Serve warm, with hot sauce on the side if desired.