Preheat the oven to 375°F (190°C) and line a baking sheet with parchment paper.
In a large bowl, combine the spicy Italian sausage, Pepper Jack cheese, biscuit mix, jalapenos, garlic powder, onion powder, black pepper, and milk.
Shape the mixture into 1-inch balls and place them evenly on the prepared baking sheet.
Bake in the preheated oven for 20-25 minutes, or until the sausage balls are golden brown.
Remove from the oven and let cool for a few minutes before serving.
Serve warm with dipping sauces of your choice.