1. Roast the peppers by placing them on an open gas flame, turning them frequently with tongs until all sides are charred black, about 7 to 10 minutes. (Alternately, the peppers can be roasted under a broiler, or on top of a gas or charcoal grill.) Place the blackened peppers in a plastic or paper bag, and let rest until cool enough to handle, about 15 minutes. Peel the peppers, split in half lengthwise, and remove the seeds and the stems.
2. Butter a 9 by 13-inch baking dish. Spread the chiles in a flat layer across the bottom of the dish.
3. In a large skillet, cook the sausage over medium-high heat, stirring to break up the meat, until browned. Add the onions and bell peppers, and cook, stirring, for 4 minutes. Add the garlic and chili powder, and cook, stirring, for 1 minute. Remove from the heat.
4. In a large bowl, whisk the eggs and half-and-half with the hot sauce, salt and black pepper.
5. In another bowl, combine the green onions, cilantro, jack, and cheddar, and mix well.
6. Spoon 1/3 of the sausage mixture over the chiles in the dish, top with 1/3 of the tortilla quarters, and 1/3 of the cheese mixture. Repeat layering, ending with a cheese layer. Pour the egg mixture over the ingredients. Let rest, covered, in the refrigerator for at least 6 hours, or overnight.
7. Preheat the oven to 350 degrees F.
8. Bake until bubbly and golden brown, and a knife inserted into the custard comes out clean, about 1 hour and 10 minutes to 1 hour and 15 minutes. Remove from the oven and let rest 10 minutes before serving. Serve with sour cream and picante sauce.