Heat oven to 375°F. Separate dough into 8 biscuits. With serrated knife, cut each biscuit into 2 layers, making 16 dough rounds.
Spread about 1/2 teaspoon pesto over each dough round. In 8 nonstick regular-size muffin cups, gently press 8 dough rounds, pesto side down, in bottom and halfway up side of cups.
Place 3 pepperoni slices in each dough-lined muffin cup. Spread about 1 teaspoon pizza sauce over pepperoni in each cup. Arrange bell pepper strips evenly over pizza sauce. Sprinkle cheese evenly over bell pepper. Top each with dough round, pesto side up; gently tuck dough edge into muffin cup.
Bake 16 to 20 minutes or until deep golden brown. Remove from muffin cups; place on cooling rack. Cool 10 minutes. Serve warm.