Preheat & prep: Preheat oven to 350°F (175°C). Grease a 9"x13" (or similar) casserole dish with a little oil or nonstick spray.
Brown the sausage: Heat a tablespoon of olive oil in a large skillet over medium heat. Add the sliced kielbasa and cook until the edges are lightly browned, about 4–6 minutes. Remove with a slotted spoon and set aside.
Sauté the onion (optional but recommended): In the same skillet, add the sliced onion and sauté 4–6 minutes until softened and beginning to caramelize. Season lightly with salt and pepper. Remove from heat.
Make the sauce: In a medium bowl whisk together the condensed cream of mushroom soup, 1/2 cup sour cream, and 1/2 cup milk (or adjust for desired thickness). Taste and season with a little salt and pepper.
Layer the casserole (first layer): Place half of the frozen pierogies in an even layer in the prepared dish (no need to thaw).
Add sausage & onions: Scatter half the browned sausage and half the sautéed onions over the pierogies. Spoon about half of the creamy sauce mixture evenly on top. Sprinkle about 1 cup (half) of the shredded cheddar over the layer.
Layer (second layer): Repeat: remaining pierogies, remaining sausage and onions, remaining sauce. Sprinkle the remaining 1 cup of shredded cheddar evenly over the top.
Cover & bake: Cover the dish tightly with foil and bake in the preheated oven for 25 minutes.
Uncover & finish: Remove foil and bake an additional 10–15 minutes, until the cheese is melted and bubbly and the top is slightly golden. If you want extra browning, place under the broiler 1–2 minutes while watching carefully.
Rest & garnish: Let the casserole rest 5 minutes out of the oven. Garnish with chopped parsley and serve with optional sour cream on the side.