Using the bowl of a stand mixer, combine the water, yeast, and sugar. Whisk together and let the mixture stand for 10 minutes, until it gets foamy and bubbly.
Add the bread flour, olive oil, and salt, and mix briefly with a spatula until it forms a loose ball.
Fit the stand mixer with the dough hook and knead the dough for 10 minutes on medium low speed, until the dough is smooth and elastic.
Grease a glass bowl with a dash of olive oil or spray with cooking oil. Shape the dough into a ball, then cover the bowl with plastic wrap or a towel. Let the dough rise until it has doubled in size. (With the cold weather we have been having this took 1 1/2 hours, in the summer months it may only take 30 minutes.)
Lightly flour a wooden board and shape your dough into a rectangle. You can do this using just your hands, not a rolling pin.
Cut the dough with a pizza cutter into 24 pieces. Do this simply by cutting the rectangle in half-length wise. Take each half and cut into 12 smaller rectangles. You should have 24 strips in the end, 12 from each half.
Then on each piece lay down two pepperoni slices so the entire piece is covered by pepperoni.
Then tie it into a knot, a simple knot of over, under, and through. If you need to you can stretch the dough a bit as you are making the knot.
Place the knot on a baking sheet lined with wax paper or sprayed with baking oil. Divide the 24 knots between two baking sheets.
Cover well with plastic wrap, towel, or CoverMate. Let the dough rise for about an hour, until doubled in size and puffy.
Preheat the oven to 425 degrees F.
Bake the garlic knots one sheet pan at a time for 8-10 minutes in the center of the oven, to check just tear one open.
Meanwhile make the garlic butter by combining the butter, parsley, garlic, and salt in a small pan and cooking over medium heat until the butter has melted.
Brush the knots with the butter right when they're hot out of the oven, so the knots better absorb the flavors. As an option sprinkle with freshly grated Parmesan cheese.