Add all ingredients to the bread pan except salt and egg

Select "dough" and press start

When the bread machine is done, remove the dough onto a lightly floured countertop

Divide the dough into 12 pieces and roll it into 8-inch ropes

Form each rope into pretzel shapes and place them on a cookie sheet

Let the dough rise for 1 hour

Preheat the oven to 425F. Brush each pretzel with egg and sprinkle with salt

Bake 20-25 minutes, until golden brown