Brown the sausage, stirring frequently to break up meat. Pour off any fat.

Arrange sausage in a 2-quart shallow baking dish. Top with bread cubes and cheese.

Mix picante sauce, eggs and milk and pour over all.

Cover and refrigerate for 2 hours or overnight.

Bake uncovered at 350 degrees for 45 minutes or until a knife inserted near the center comes out clean.