Preheat the oven to 350°F (175°C). Grease a 2-quart baking dish.
In a large skillet, heat the olive oil over medium heat. Add the sliced squash and chopped onion. Sauté for about 5-7 minutes until the squash is tender and the onion is translucent.
Remove the skillet from heat and let the mixture cool slightly. Stir in the salt, black pepper, garlic powder, onion powder, and paprika.
In a large bowl, combine the sautéed squash mixture, shredded cheddar cheese, sour cream, and beaten eggs. Mix until well combined.
Fold in half of the crushed crackers, then pour the mixture into the prepared baking dish. Top with the remaining crushed crackers.
Bake in the preheated oven for 30-35 minutes, or until the top is golden brown and the casserole is set.
Let it cool for about 10 minutes before serving.