Smoked Sausage Potato Bake

"My mom passed this recipe along to me. I often fix it for company because it's pleasing to the eye as well as the appetite. I rarely have leftovers, since second helpings are a given.—Joanne Werner, La Porte, Indiana..."

INGREDIENTS
1-3/4 cups water
2/3 cup whole milk
5 tablespoons butter, divided
1/2 teaspoon salt
2-2/3 cups mashed potato flakes
1 cup sour cream
1 cup shredded cheddar cheese
1 pound smoked sausage links, halved lengthwise and cut into 1/2-inch slices
1 cup shredded Monterey Jack cheese
2 tablespoons dry bread crumbs
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