In a medium bowl combine flour, baking powder, sugar and salt. Cut in cold butter with a pastry blender or by criss-crossing 2 knives, until mixture looks like fine crumbs. Stir in milk (dough should be soft).
Place dough on a work surface and divide into 12 equal portions. Pat each portion up the sides of a muffin tin working it in an even layer.
Fill each muffin cup with 1 tablespoon of spaghetti sauce. Evenly distribute the mozzarella cheese and top with mini pepperonis. Bake for 15 minutes or until cheese is bubbly and biscuit is golden.