01 - In a large bowl, combine warm water, yeast, and sugar. Let sit for 5 minutes until foamy.
02 - Add flour, salt, and melted butter to the yeast mixture. Mix until a shaggy dough forms.
03 - Knead dough on a floured surface for 5 to 7 minutes until smooth and elastic.
04 - Place dough in a greased bowl, cover, and let rise in a warm place for 1 hour or until doubled in size.
05 - Preheat oven to 450°F. Line two baking sheets with parchment paper.
06 - In a large pot, bring 10 cups water and baking soda to a boil.
07 - Punch down dough and divide into 8 equal pieces. Roll each into a 20-inch rope, form into a U-shape, twist ends, and press down to create the classic pretzel shape.
08 - One at a time, gently place pretzels into the boiling baking soda water for 30 seconds. Remove with a slotted spatula and place on prepared baking sheets.
09 - Brush each pretzel with egg wash and sprinkle with coarse salt.
10 - Bake for 12 to 15 minutes, or until deep golden brown. Let cool slightly on a wire rack.
11 - In a small saucepan, melt butter over medium heat. Whisk in flour and cook for 1 minute.
12 - Gradually whisk in milk until smooth. Cook, stirring, until slightly thickened, approximately 2 to 3 minutes.
13 - Reduce heat to low; stir in cheddar and Monterey Jack cheeses until melted and smooth. Add Dijon mustard, garlic powder, salt, and pepper. Keep warm until serving.