Preheat oven to 425 degrees. Toss the potatoes with olive oil, salt and pepper and place on a greased sheet pan. Line another sheet pan with oversized parchment paper (for easy clean-up). Place bacon strips in pan. Put potatoes in oven first and bake until lightly brown (approximately 20-25 minutes), stirring halfway through and adding the pan of bacon if oven can accommodate both. Flip bacon strips halfway through cook time (8-12 minutes total). Remove both pans from oven. Pat off bacon grease. Cut bacon into bite sized pieces.
While potatoes and bacon are cooking, heat a tablespoon of olive oil in a small pan; and sauté red peppers for 2-3 minutes. Add garlic and sauté another 1 minute. Remove from heat.
In a greased 8 x 8 casserole dish, mix potatoes, bacon, red pepper and garlic together with one cup of the cheese.
Whisk eggs, milk, cream, salt and pepper together and pour over bacon mixture in dish. Sprinkle remaining cup of cheese on top. Bake for 30-40 minutes until cooked all the way through and golden brown on top. Remove from oven and rest for 5 minutes to set. Ready to serve.