Heat oven to 425°F. Spray 13x9-inch (3-quart) glass baking dish with cooking spray.
Separate each can of dough into 10 biscuits; flatten each biscuit into thin round. Spread 1/2 teaspoon pizza sauce on center of each round. Top each with 1 basil leaf. Sandwich 1 cheese piece between 2 pepperoni slices; place on top of basil. Fold edges up and over filling; pinch to seal. Place biscuits, seam sides down, in baking dish.
In small bowl, beat egg and water. Lightly brush tops of biscuits with egg mixture. Sprinkle with 1 teaspoon Italian seasoning.
Bake 15 to 20 minutes or until golden brown.
In small bowl, mix garlic butter ingredients. Brush over biscuits; serve warm.