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Preheat the oven to 400 degrees.
Cut each pepperoni about half way up the top, bottom, left, and right side - in the pattern of a cross.
Place the pepperonis in a mini muffin pan, allowing the cut sides to overlap and create a cup.
Bake pepperonis in a preheated oven for 5 minutes, until crispy.
Remove the pepperonis from the pan and use a paper towel to absorb the residual grease from the muffin pans. Return the pepperonis to the pan.
Next, spoon half a teaspoon of pizza sauce into each cup. Then place a small cube of mozzarella cheese on top of the sauce.
Return to the oven for 2 - 5 minutes, until the cheese has melted.
Remove pepperonis from the pan, transfer to a plate, then garnish with diced fresh basil (optional).