Combine olive oil, water, potatoes, red bell pepper, garlic, salt and pepper in a small oven safe skillet. Cook on medium high heat until liquid begins to boil. Cover with a tight-fitting lid and cook 10-12 minutes until potatoes are just tender and liquid is almost absorbed.
Reduce heat to low.
Evenly sprinkle 1/2 cup grated cheese and the sausage over the potatoes. Pour beaten egg on top and jiggle the pan to evenly distribute the egg. Replace the cover and cook about 8-10 minutes or until egg is almost set.
Top the eggs with the remaining 1/4 cup cheese. Turn the broiler on high heat and place the skillet in the oven. Broil on high heat until egg is set and cheese is melted, about 2 minutes. Watch carefully so it does not brown or burn!
Cut into wedges and serve garnished with sour cream and chopped scallions.
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