Preheat oven to 375°F (190°C). Grease a 9x13 inch baking dish.
In a large skillet, cook the breakfast sausage and chopped onion over medium heat until the sausage is browned and the onion is tender. Drain off any excess grease.
In a large bowl, combine the cooked sausage and onion mixture, cream of mushroom soup, and milk. Stir until well combined.
Stir in 1 cup of the shredded cheddar cheese.
Add the thawed hash brown potatoes to the sausage mixture and stir to combine.
Pour the mixture into the prepared baking dish and spread evenly.
Sprinkle the remaining 1 cup of shredded cheddar cheese over the top.
Bake for 50-60 minutes, or until the casserole is bubbly and the top is golden brown.
Let stand for 5-10 minutes before serving.
Notes
This casserole can be assembled the night before and refrigerated. Add an extra 10-15 minutes to the baking time if baking from cold.