Place bacon in a large skillet. Cook over medium-high heat until evenly brown. Drain and crumble then set aside. Add the green pepper and onion to the skillet; cook and stir until the onion has softened and turned translucent and the green peppers are tender, about 5 minutes. Grease a 9x13-inch casserole dish with the tablespoon of butter. Mixed together potatoes, onions, green peppers, bacon and pepper. In a mixing bowl, beat the eggs with the milk and parsley. Combine the beaten egg mixture, 2 cups cheese and the potato mixture and pour into the casserole dish. Cover and refrigerate overnight.Preheat oven to 375 degrees F. Bake in preheated oven for 45 minutes until set, sprinkle 1/2 cup grated cheese and bake an additional 5 minutes or until cheese is melted.