Preheat the oven to 350 degrees. Grease a 2-quart casserole dish. Beat 2 of the eggs well with a whisk in a small bowl. Pour the beaten eggs over the matza farfel and blend lightly in a large bowl.
In a separate small bowl, combine milk, salt and pepper. Beat the remaining egg with a whisk and stir it into the milk mixture. Cut the butter into 16 pieces. Layer the ingredients into the casserole dish as follows, being sure to distribute each layer evenly: half the farfel mixture, one cup of Cheddar cheese, half the sour cream (in dabs), and half the butter pieces.
Repeat with the next layer. Pour the milk mixture over the top and sprinkle with the remaining 1/2 cup Cheddar cheese. Cover the casserole dish and bake for 10-15 minutes until lightly browned on top.