Using a microwave-safe plate, arrange 7 oz. (approx. 30 pieces) of pepperoni (or whatever quantity will fit on plate without much overlapping) on top of two layers of paper towels. Microwave at full power for 4 to 5 minutes, watching to make sure the pepperoni doesn't burn.
Remove pepperoni from plate and allow 10 minutes to cool, then pulverize in food mill or finely chop.
Place all ingredients in a Dutch oven or saucepan.
Bring to a boil, then lower the heat and simmer for 30 minutes, covered.
Finish this sauce off by simmering meatballs or ground beef in it, then serving over pasta, topping off with freshly grated Parmesano Reggiano cheese.