Preheat the air fryer: Set your air fryer to 400°F (200°C) for 5 minutes. A hot basket helps the potatoes crisp.
Prep the potatoes: Rinse and dry them well. Dry potatoes crisp better. Dice into even 1/2-inch cubes so they cook at the same pace.
Toss the veggies: In a large bowl, combine potatoes, onion, peppers, and cooked sausage or bacon (if using).
Add oil, smoked paprika, garlic powder, onion powder, thyme, salt, and pepper. Toss to coat evenly.
Air fry the hash base: Add the mixture to the air fryer basket in a mostly even layer. It’s okay if it’s slightly crowded, but avoid thick piles.
Cook for 12–15 minutes, shaking the basket or stirring halfway through, until potatoes are golden and tender.
Create egg wells: Use a spatula to make 2–4 small wells in the hash. Lightly oil each well to prevent sticking.
Cook the eggs: Crack an egg into each well. Air fry at 350°F (175°C) for 4–7 minutes, depending on how you like your yolks. Check at 4 minutes for runny yolks and continue until whites are set.
Season and garnish: Sprinkle with extra salt and pepper, add chopped herbs, and serve hot.
Finish with hot sauce or salsa if you like.