Steps:
- For the dough: Spray a loaf pan with cooking spray.
- Add the sugar, yeast, 1 cup of the flour and 1 cup warm water to a gallon-size resealable plastic bag. Press down to remove excess air from the bag. Close the bag tightly and squish the ingredients in the bag until well mixed. Let the bag sit for 10 minutes to activate the yeast.
- Add the butter, oil, salt and another cup of flour to the bag, close the bag and mix well. Add the last cup of flour and mix again until all the ingredients are well incorporated and the dough begins to pull away from the bag.
- For the topping: Mix together the pepperoni and Italian seasoning in a small bowl.
- Pour the dough out of the bag onto a lightly floured surface. Gently knead the dough until it comes together and is not sticking to the board. Using your fingers, flatten out the dough into a circle about an inch in thickness. Sprinkle the pepperoni mixture on top of the dough. Gently roll the dough (like a burrito) to make the shape of a loaf. Tuck the sides of the dough under to keep the pepperoni mixture inside. Place the dough seam-side down into the prepared loaf pan and cover with a kitchen towel. Let the dough rest and rise for 30 minutes.
- Preheat the oven to 375 degrees F.
- Once the dough has risen, remove the towel, top with the shredded cheese and bake until golden, 25 to 30 minutes. Let cool in the pan. Serve the bread with warm pizza sauce.
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