Preheat your oven to 350°F. Lightly grease a baking dish so the casserole does not stick.

Slice green chilies open and remove seeds if needed. Lay them flat evenly at the bottom of the dish.

Sprinkle half of the cheddar and Monterey Jack cheese over the chilies. Spread evenly for good flavor in each bite.

Place another layer of chilies on top of the cheese. This creates a nice layered texture.

Add the remaining cheese over the second chili layer. Make sure it covers the entire surface.

In a bowl, whisk eggs, milk, flour, baking powder, salt and pepper until smooth and lump-free.

Pour the egg mixture evenly over the casserole. It will soak into the layers as it bakes.

Bake for 35 to 40 minutes until the top is golden and the center is set.

Insert a knife in the center. If it comes out clean, your casserole is ready to remove.

Let the casserole rest for 10 minutes before cutting. This helps it hold its shape.

Cut into squares and serve warm. Each piece will have layers of chilies and melted cheese.