Preheat the oven to 350 degrees Fahrenheit.
Heat the olive oil in a large pan.
Dice the onion and cook in the oil until it becomes translucent.
In the meantime, carefully remove the stem and seeds from the jalapeño, poblano pepper and green pepper (wear gloves so you don't burn your fingers on the jalapeño peppers). Dice them into small pieces and add to the pan once the onions have cooked. Cook for five minutes.
Add the shredded potatoes to the pan and cook until they become soft and slightly brown.
In a small bowl, whisk the eggs, onion powder, garlic powder, smoked Spanish paprika and milk together.
Grate the cheese and add about 3/4 of it to the potato mixture. Stir and remove from heat and let the cheese melt.
Spray the 9 x 9 inch baking dish with cooking oil spray and spread the potato mixture into the pan.
Next, pour the whisked eggs over the filling and spread the remaining grated cheese over the top of the casserole.
Bake for 40 minutes or until the cheese start to bubble and turn a light golden brown.
Let sit for 5 to 10 minutes before serving to allow the cheese to set.
Slice into pieces and garnish with slices of pepper or avocado.