DRAIN AND SEED PEPPERS. CUT MONTEREY CHEESE INTO LONG CHEESE STICKS THAT WILL FIT INSIDE PEPPERS. IF PEPPER TEARS WRAP PEPPER AROUND EACH STRIP OF CHEESE.
PLACE IN A GREASED 10X6X2 BAKING DISH.
IN A MEDIUM BOWL COMBINE EGGS AND MILK. BEAT IN FLOUR, BAKING POWDER, AND SALT UNTIL SMOOTH. POUR OVER PEPPERS IN BAKING DISH.
SPRINKLE WITH GRATED CHEESE.
BAKE IN PREHEATED 350° OVEN FOR 30 UNTIL GOLDEN AND CENTER IS BAKED.
CUT INTO SQUARES AND SERVE.
TOP WITH SOUR CREAM AND SALSA.