Preheat your oven to 400°F.
In a mixing bowl, combine the Bisquick mix, milk, melted butter, garlic powder, and Italian seasoning. Stir until just mixed — don't overwork the dough or your biscuits will be tough. (The dough should be slightly sticky but hold together. Add a tablespoon more milk if it seems too dry.)
Fold in the chopped pepperoni and shredded cheddar until evenly distributed throughout the dough.
Using a large spoon or ice cream scoop, drop heaping spoonfuls of dough onto ungreased baking sheets, spacing them about 2 inches apart.
Bake for 16-18 minutes until the tops are golden brown and the biscuits sound hollow when tapped.
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