Butter a 9x13-inch glass baking dish. Cover the bottom of the dish with 8 slices of bread. Next, layer with the ham and cheese, then top with the remaining 8 slices of bread.
Beat eggs and seasonings; add milk, onion and green pepper. Pour evenly over the top of the bread. Cover and refrigerate overnight.
In the morning, melt 1/2 cup butter and pour over the top of the casseroled. Sprinkle with the cereal.
Bake in a preheated 300° F oven, uncovered, for 1 hour. Let sit 10 minutes before serving.Makes 8