Usually in reference to a females breasts. Round, dark Areola's that resemble pepperoni's. The opposite of "camoreolas."
"Jayme has some great tits. She has those nice round brown pepperonips."
A condom
"That girl is dirty bro, u better be packin' that throw-away cock"
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An areola that just blends in with the rest of the titty. The opposite of "Pepperonips"
"I was really disappointed with Kathy's Titties. She took her shirt off and they looked like a pair of knees. She had some nasty Camoreola's"