Mix warm water, active dry yeast, and sugar in a bowl. Let sit for 5 minutes until foamy.

Add flour and salt to the mixture, mixing until a dough forms. Knead for 8-10 minutes until smooth.

Place dough in a greased bowl, cover, and let rise in a warm place for about 1 hour until doubled in size.

Punch down the dough, divide into 8 pieces, and roll each into an 18-inch rope. Form into a pretzel shape.

Cut mozzarella cheese into small pieces, fill each pretzel with cheese, ensuring it's fully enclosed.

Boil 10 cups of water with baking soda. Boil each pretzel for 30 seconds on each side.

Preheat oven to 425°F. Transfer boiled pretzels to a baking sheet, brush with beaten egg, and bake for 15-18 minutes until golden.

Allow pretzels to cool on a rack for about 5 minutes before serving with dips.