In a large mixing bowl, combine warm water, sugar, and active dry yeast. Let sit for 5 minutes until frothy. Add flour, salt, and melted butter. Knead for 6-8 minutes until smooth and elastic, let rise for 1 hour.

Preheat oven to 450°F. Punch down the dough, divide into 1.5-inch pieces. Flatten slightly, add cheese, seal tightly, and place on a parchment-lined sheet.

In a large pot, bring water to a gentle boil, add baking soda. Boil pretzel bites in batches for 30 seconds each. Use a slotted spoon to remove and let drain.

Brush each pretzel bite with beaten egg and sprinkle with coarse sea salt. Bake for 12-15 minutes until golden brown.

Let cool slightly before serving. Enjoy with your favorite dipping sauces.