Combine warm water, sugar, and active dry yeast in a mixing bowl. Let sit for 5-10 minutes until frothy.

Stir in melted butter and salt. Gradually add flour until a cohesive dough forms.

Knead for 5-7 minutes on a floured surface until smooth. Place in a greased bowl, cover, and rise for 1 hour.

Mix together shredded cheddar, cream cheese, garlic powder, onion powder, and salt until creamy.

Punch down the risen dough and divide into 12 pieces. Roll into 18-inch ropes.

Flatten slightly, place cheese filling in center, fold dough over, and seal edges.

Boil water in a pot, then add baking soda. Ensure it’s bubbling before adding pretzels.

Gently lower each pretzel into boiling water for 30 seconds on each side.

Preheat oven to 425°F. Brush boiled pretzels with egg wash and sprinkle with salt.

Bake for 12-15 minutes until golden brown.