01 - Combine warm water, sugar, and yeast in a large mixing bowl; let stand until frothy, about 5 minutes.
02 - Add flour, salt, and melted butter to the yeast mixture. Mix to form a shaggy dough, knead for 5–7 minutes until smooth.
03 - Cover the bowl with plastic wrap and allow dough to rise in a warm area until doubled in size, approximately 1 hour.
04 - Divide dough into equal pieces; flatten each and fill with cheddar cheese. Seal each piece into a ball shape.
05 - Bring 8 cups of water and baking soda to a boil. Using a slotted spoon, briefly dip each pretzel bite in the bath for 30 seconds.
06 - Arrange pretzel bites on parchment-lined baking sheet. Brush with beaten egg and sprinkle with coarse salt.
07 - Bake in a preheated oven at 425°F for 12–15 minutes or until golden brown and cheese is melted.
08 - Whisk together Dijon mustard, honey, mayonnaise, and lemon juice in a small bowl until smooth.
09 - Serve warm pretzel bites alongside honey mustard dip for dipping.