Heat oil in a large pot over medium-high heat. Brown sausage until fully cooked, breaking into small chunks. Drain excess fat if desired.

Add onion and green pepper. Cook until softened, about 3-5 minutes.

Stir in chili powder, garlic powder, salt, pepper, and crumbled bacon. Add canned tomatoes, then add diced potatoes.

Bring to a boil. Reduce heat to medium-low and simmer, covered, for about 30 minutes or until potatoes are fork-tender.

Serve. Top with shredded cheddar cheese if desired. (It's great with a fried egg on top)