Baked Hash Brown Casserole

4 slices OSCAR MAYER Bacon , cut into 1/2-inch pieces

1 onion , chopped

1 red pepper , chopped

1 pkg. (30 oz.) ORE-IDA Shredded Hash Brown Potatoes , thawed

1 can (10-3/4 oz.) reduced-fat reduced-sodium condensed cream of mushroom soup

1 cup BREAKSTONE'S Reduced Fat or KNUDSEN Light Sour Cream

1-1/4 cups KRAFT 2% Milk Shredded Colby & Monterey Jack Cheeses , divided

What You Need