He probably trained in the studio of Nikolaos Doxaras in Zakynthos, and under his supervision he painted in 1757 St. John of Damascus and St. Barbara at Ayios Dimitrios, Kollas, which have not survived. In 1760- 1764 he most probably travelled to Venice while in 1766 he was in Zakynthos where he painted the Procession of Ayios Dionysios, a signed and dated painting which is in the women’s loft of the church of Ayios Dionysios. In 1770 he received facial injuries in a brawl. In 1777 he was ordained a priest in Lefkada and then became a parish priest in the churches of his birthplace. Along with his painting and church work he was also involved with writing satirical verse, intensely critical of his period, while his eccentric behaviour such as his subversive and theatrical way of conducting the divine service brought him into conflict with his surroundings. Three religious painting unities, coming from the churches of Zakynthos and specifically from Ayios Spyridon, Flambouriaris, Ayios Georgios, Petroutsis and Ayios Antonios, Andritsis, are attributed to Koutouzis. The representation of the Nativity of the Virgin Mary on the urania (ceiling) of the church of the Virgin Mary of Strangers in Corfu, as well as four paintings in the monastery of Ayios Dionysios on Zakynthos, with subjects taken from the life of the saint, are also his works.
A leading figure in Ionian island art during the 18th and the beginning of the 19th century he cultivated mainly religious scenes, while in the context of secular painting his contribution to the development of portraiture is considered most important. He followed the models of the Italian baroque and broke with the tradition of post-Byzantine art, both on the level of technique and of visual treatment. His work exercised an influence on his fellow artists and was carried on in the painting of his student, Nikolaos Kantounis.