Preheat oven to 375°F and line two baking sheets with parchment paper.
In a large bowl, combine the room temperature sausage, shredded cheddar cheese, Bisquick mix, milk, garlic powder, cayenne pepper, and black pepper.
Mix everything together with your hands until well combined and the mixture holds together when pressed.
Roll the mixture into 1-inch balls and place them about 1 inch apart on the prepared baking sheets.
Bake for 20-25 minutes, rotating the pans halfway through, until the sausage balls are golden brown and crispy on the outside.
Remove from oven and let cool for 5 minutes on the baking sheet before transferring to a serving platter.
Serve warm or at room temperature with your favorite dipping sauce.