Spread the cheddar cheese out into 8 even circles of cheese on a parchment lined baking sheet. Leave some room in between each circle of cheese.
Bake for 10 minutes, or until the cheese takes on a lacelike appearance and the edges are starting to brown.
Remove the cheese from the oven let cool for a minute, and then turn each circle of cheese over the bottom of the cups on an inverted muffin tin. Mold the cheese circles around the cups and allow them to cool and harden, forming cheese cups as they do.
In a mixing bowl, combine the mozzarella cheese shredded, cream cheese, pepperoni pieces, parsley and parmesan cheese. Stir to combine well.
Place a tablespoon of pizza sauce into the bottom of each cheese cup. If the holes in the cheese of the cups are too large, you can place the sauce on top of the filling instead.
Separate the filling into 8 even portions, and fill the cheese cups with them.