In large skillet, heat oil over medium heat; add garlic and vegetables. Sauté until heated through (about 5-6 minutes). Remove from heat
Stir in 1/3 cup bread crumbs and butter; transfer to a greased 2-quart baking dish. Cover with foil and bake in a preheated 375°F oven 20 minutes.
Meanwhile in small saucepan over medium heat, combine Monterey jack, cream cheese, horseradish and milk. Cook until cheese is melted, stirring constantly.
Remove vegetables from oven and pour cheese sauce over vegetables; top with remaining bread crumbs. Continue baking 10 minutes or until cheese is bubbly and bread crumbs are golden brown.