In a large mixing bowl, combine the diced potatoes, shredded cheddar cheese, sour cream, salsa, taco seasoning, diced onions, and diced bell peppers. Mix well.
Transfer the mixture to a greased baking dish and spread it out evenly.
Bake in the preheated oven for 40 minutes, or until the potatoes are tender and the top is golden brown.
Let it cool for a few minutes before serving. Enjoy!
Notes:
You can add cooked ground beef or chicken for extra protein.