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In a large bowl, add the yeast and sugar. Gently pour the warm water over it and let proof until foamy, about 5 minutes.
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Whisk in the melted coconut oil and then stir in the flour and salt until well combined. Using well-floured hands, form dough into a moist ball. Place in a lightly greased bowl and cover with a plastic wrap. Let dough rise in a warm place until doubled in size, about 1 hour.
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Bring 5 cups water and 1/3 cup baking soda to a slight boil in a large pot. Reduce heat to medium low.
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Preheat oven to 425°F. Line a baking pan with parchment paper.
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Once dough has doubled in size, divide into 10 balls. Place dough balls back into the greased bowl and cover with a damp cloth while you work with one ball at a time.
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Roll and stretch a portion of dough into a 28-inch rope with your hands, working from the center to the ends. Twist the rope into a pretzel shape. Gently dip the pretzel into the hot water, for about 2 minutes, and then transfer to the baking pan. Repeat process till you have 10 pretzels.
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Whisk together the egg and 1 teaspoon water. Brush the egg wash all over the tops and sides of each pretzel and immediately sprinkle generously with kosher salt.
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Bake for 12-14 minutes, or until golden brown.