Preheat your oven to 350ºF. It’s essential to have your oven ready so that the casserole cooks evenly.
Lightly spray a 9×13-inch baking pan with cooking spray to prevent sticking. This small step ensures your casserole comes out easily.
In a large skillet, cook the sausage over medium heat until it’s no longer pink. Use a meat masher tool to break it up as it cooks. This will help ensure even cooking.
Once the sausage is cooked, drain any excess fat from the skillet. This step prevents the casserole from becoming too greasy.
Add the softened cream cheese and Rotel tomatoes to the skillet. Stir them in with the cooked sausage until well combined and creamy. The mixture should be smooth and well integrated.
In a large bowl, toss together the frozen tater tots, the sausage and cream cheese mixture, and shredded cheddar cheese. Make sure the tater tots are evenly coated. This will give every bite a perfect blend of flavors.
Pour the mixture into the greased 9×13-inch baking pan. Spread it out evenly to ensure it cooks uniformly.
In another bowl, whisk together the eggs, salt, pepper, garlic powder, onion powder, and milk. This egg mixture will act as a custard base that binds the casserole.
Carefully pour the egg mixture over the tater tot mixture in the baking pan. Make sure it's evenly distributed.
Bake uncovered for 60 to 70 minutes or until the eggs are set and the top is golden brown. You can check the doneness by inserting a knife in the center; it should come out clean.