In a skillet over low heat, cook bacon until crisp. Remove to paper towel. Reserve 2 tablespoons drippings; add potatoes, green pepper, onion, salt and pepper. Cook and stir over medium heat until the potatoes are golden brown.
Stir in eggs and milk, and cook and stir until eggs are almost set, about 2 minutes.
Reduce heat to low. Add cheese and bacon, stirring gently until heated through and eggs are set.
Serves 4 to 6.