Preheat the oven to 350°F. Lightly grease an 8-cup muffin pan or small oven-safe ramekins with cooking spray. If using individual ramekins, place them on a baking sheet for easier handling.
In a small bowl, combine the softened butter, olive oil, garlic powder, Italian seasoning, salt, and black pepper. Stir until smooth and well combined.
Separate the refrigerated biscuits and gently flatten each one. Press a biscuit into each muffin cup, working it across the bottom and up the sides to create a small crust. Prick the bottom and sides a few times with a fork.
Brush the inside of each biscuit cup with a thin layer of the garlic butter mixture. Spoon about 1 tablespoon of pizza sauce into each cup, spreading it gently across the bottom.
Divide the mozzarella and chopped pepperoni among the cups. Sprinkle a little Parmesan and Italian seasoning over each one. Don't overfill the cups so the cheese doesn't spill excessively during baking.
Bake for 20–23 minutes, or until the biscuit crusts are golden brown and the cheese is completely melted and bubbling. Check them around the 18-minute mark since ovens and pan sizes can vary.
Let the mini pizza pot pies cool in the pan for 3–5 minutes before carefully lifting them out. Garnish with fresh basil, Parmesan, and red pepper flakes if desired. Serve warm.
