Combine warm water, sugar, and yeast in a large bowl.
Let the mixture sit for 5–10 minutes until foamy.
Add melted butter, salt, and flour.
Mix until a soft dough forms.
Knead the dough for 6–8 minutes until smooth.
Place dough in a greased bowl and cover.
Allow the dough to rise for about 1 hour or until doubled.
Preheat oven to 425°F (220°C).
Line baking sheets with parchment paper.
Bring 10 cups of water and baking soda to a boil.
Punch down the dough.
Divide dough into 8 equal pieces.
Roll each piece into a long rope.
Cut ropes into 1-inch bite-sized pieces.
Boil pretzel bites in batches for 20–30 seconds.
Remove with a slotted spoon and place on baking sheet.
Whisk egg with 1 tablespoon water.
Brush each pretzel bite with egg wash.
Sprinkle generously with coarse pretzel salt.
Bake for 12–15 minutes until deep golden brown.
Serve warm with cheese sauce or mustard.