Cut bread into 3/4 to 1-inch cubes (about 10 cups).
In a greased, shallow 3-quart casserole or a 13x9x2-inch baking dish, arrange bread cubes evenly. Sprinkle with Monterey Jack and cheddar cheese.
In a microwave-safe bowl, melt cream cheese; add the chilies. Carefully spread mixture over the top of the cheese.
In a large mixing bowl, beat the eggs. Stir in the milk. Pour egg mixture over cheese mixture. Cover and refrigerate for several hours or overnight.
Bake, uncovered, in a 350° F oven for 55 to 60 minutes or until a knife inserted near the center comes out clean. Let stand for 10 minutes before serving.Makes 8 to 10