In a large mixing bowl, combine warm water and 2 tablespoons of sugar. Sprinkle yeast on top and let it sit for about 5 minutes until foamy.
Add flour and salt to the yeast mixture. Stir until a dough begins to form and then knead on a floured surface for about 5 minutes until smooth and elastic.
Place the dough in a greased bowl, cover with a kitchen towel, and let it rise in a warm place for about 1 hour, or until it has doubled in size.
In a large pot, bring about 4 cups of water to a boil, then stir in the baking soda (be careful, it will foam up).
Once the dough has risen, punch it down and turn it out onto a floured surface. Roll it into a log and cut it into small pieces (about 1-inch each).
Carefully drop the pretzel bites into the boiling soda bath, cooking for about 30 seconds on each side. Remove them with a slotted spoon and place them on a lined baking sheet.
Brush the tops of the pretzel bites with the beaten egg for a glossy finish.
Preheat your oven to 425°F (220°C) and bake the pretzel bites for 12-15 minutes, or until golden brown.
While the pretzels are baking, mix the granulated sugar and ground cinnamon in a bowl.
Once out of the oven and still warm, toss the pretzel bites in melted butter, then coat them in the cinnamon sugar mixture until fully covered.
Notes
Serve warm with chocolate or caramel sauce for dipping.