Meanwhile, using 2 1/2-inch round cutter, cut 4 half circles from each slice of cheese for beards. Cut 1/4-inch strip from straight side of each half circle for bottoms of hats. Using same cutter, make hats: Cut 1/2-inch football-shape piece away from right side of each slice of pepperoni. Using paring knife, cut 1/4 inch from bottom of each slice of pepperoni. Reserve remaining cheese and pepperoni for another use, or discard.