Cook gnocchi in large saucepan of boiling water, until just tender, following the packet instructions.
Meanwhile, reserve 8 pepperoni slices. Cut the remaining pepperoni slices into quarters.
Heat oil in an ovenproof frying pan over medium-high heat. Add onion, mushroom, capsicum and quartered pepperoni. Cook, stirring occasionally, for 5-7 minutes or until vegetables are tender.
Add crushed tomato. Bring to the boil. Reduce heat and simmer, stirring occasionally, for 5-7 minutes or until mixture thickens. Season with salt and pepper. Stir in gnocchi. Level top.
Preheat grill on high. Sprinkle gnocchi with Perfect Pizza cheese. Top with reserved pepperoni, dried oregano and chilli flakes, if you like. Grill for 4-5 minutes or until cheese is golden. Sprinkle with fresh oregano to serve.