If you can twist the pups off (because there is just a little connective tissure holding them on) or if they fall off, start new plants. But your cactus would be the envy of most of us who grow cactus and are trying hard to get them big and beautiful.
Don't pot up to a larger pot unless this one is tipping over. It looks like there is quite a bit or room in this one if you bring it up to the pot brim. Its okay if the plant top is wider than the pot. The danger of potting it to a larger pot is that more moisture will be held against the roots leading to root rot and death of the plant unless you are extremely careful. Also, you don't really want the stems of the cactus to lie on the soil surface - that could also cause rot.
Daisy