Preheat and prep: Preheat your air fryer to 380°F (193°C) for 3–5 minutes. Toss the diced potatoes with olive oil, smoked paprika, garlic powder, onion powder, chili powder (if using), and a generous pinch of salt and pepper.
Cook the potatoes: Lightly spray the air fryer basket.
Add the seasoned potatoes in a single layer (work in batches if needed). Air fry for 10 minutes, shake or stir, then cook another 6–8 minutes until golden and crisp. Tip: Don’t overcrowd the basket—this keeps them crunchy.
Cook the sausage or bacon: While the potatoes cook, chop the sausage or bacon. When the potatoes are done, set them aside.
Add the sausage or bacon to the basket in a single layer and air fry at 380°F (193°C) for 6–8 minutes, stirring once, until browned and cooked through. Drain excess grease if needed.
Air-fry the peppers and onions: Toss the diced bell pepper and red onion with a teaspoon of oil and a pinch of salt. Air fry at 370°F (188°C) for 4–5 minutes until slightly softened and charred at the edges.
Make the eggs (scrambled or baked): Whisk the eggs with the milk or water and a pinch of salt.
Pour into a small, oven-safe dish that fits your air fryer and has been lightly greased. Air fry at 300°F (149°C) for 6–9 minutes, stirring once halfway, until just set and fluffy. For fried eggs instead, preheat a lightly oiled dish and crack in the eggs, then cook 4–6 minutes.
Assemble the bowl: In a large bowl, add a base of crispy potatoes.
Top with sausage or bacon, cooked peppers and onions, and the eggs. Sprinkle cheese over the warm ingredients so it melts.
Add fresh toppings: Finish with avocado, green onions or cilantro, and a spoonful of salsa or a drizzle of hot sauce. Taste and adjust salt and pepper. Serve immediately for best texture.