Preheat the oven to 350°F (180°C).
Cut the loaf of bread into slices without cutting all the way through.
Place pepperoni slices and grated cheese between each slice.
Pour pizza sauce over the loaf.
Wrap the loaf in foil and bake for 15-20 minutes.
Unwrap the foil and bake for an additional 5 minutes until cheese is bubbly.
Slice and serve hot.