Place the freeze dried sausage and into a bowl and add the cup of water to hydrate for about 10 minutes. In another bowl whisk together the 2 1/2 cups water, powdered eggs and powdered milk. Whisk until smooth.
Heat a saute pan to medium-high heat. Add the olive oil. To the oil add the peppers, onion and chilies. Saute until soft and then season with the spices. To the hot pan add the sausage once it's been drained from the water. Saute until sausage is warmed through. Add the egg/milk mixture and let it start to cook on the bottom. Mix eggs so that the mixture doesn't get overly cooked. Turn down the heat, put a lid on it and let the egg cook on low heat. After a few minutes take the lid off, stir one more time and then add the shredded cheese ontop of the egg. Stir a little bit and then put the lid back on the pan. Once the cheese has melted, remove lid and serve. You can serve in a tortilla for breakfast burritos or with a slice of toast.