Cook sausage until browned, stirring to crumble; drain well. Place sausage in a lightly greased 13- x 9- x 2-inch baking dish or two 1 1/2-quart casseroles, if desired.
Remove crust from bread; cut bread into cubes. Combine bread cubes and remaining ingredients; mixing well. Pour mixture over sausage; cover and refrigerate overnight.
Bake, covered, at 350° for 30 minutes. Uncover and bake an additional 30 minutes.
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