Preheat oven to 425 degrees F. Line a baking sheet with parchment paper, set aside.
In a large mixing bowl, whisk together the flour, baking powder, salt, Italian seasoning, garlic powder, and chili flakes. Add the cold cubed butter, and cut in with a pastry cutter or your fingers, until it resembles coarse crumbs the size of peas. Add 1/2 cup shredded mozzarella and 1/2 cup mini pepperoni, and toss to evenly combine. Pour in the heavy cream and stir until the dough just comes together, making sure not to over-mix.
Turn the dough out onto a well-floured work surface and pat or roll out into a large circle, about 3/4 of an inch thick. Cut out into 4-inch circles and arrange on the prepared baking sheet. Brush the scones with the egg wash and sprinkle with remaining cheese and top with remaining pepperoni.
Bake for about 20 to 25 minutes, or until golden brown. Remove from the oven and let cool slightly before serving warm, with the sauce. Enjoy!