Preheat the oven to 425°F. Lightly grease a 9x13-inch baking dish.
Place the potatoes in a large pot and cover with cold, salted water. Bring to a boil and cook until fork tender, about 18 to 20 minutes. Drain well.
Spread the potatoes in the prepared baking dish in one even layer. Using the bottom of a glass or a potato masher, gently smash each potato to about ½-inch thick.
Drizzle with olive oil and sprinkle evenly with the Montreal steak seasoning.
Bake for 30 to 35 minutes, until the potatoes are golden brown and crispy.
While the potatoes bake, cook the breakfast sausage in a large skillet over medium heat until browned, breaking it into crumbles. Stir in the chopped spinach and cook until just wilted. Drain any excess grease. Set aside to cool.
In a large bowl, whisk together the eggs, milk, Dijon mustard, and black pepper. Stir in the cooked sausage and spinach, 1½ cups cheddar cheese, Monterey Jack cheese, and green onions.
Reduce the oven temperature to 375°F.
Pour the egg mixture evenly over the potatoes and sprinkle with the remaining ½ cup cheddar cheese.
Bake for 25-28 minutes, or until the eggs are set and the center reaches 160°F.
Let the casserole rest for 10 minutes before slicing and serving.