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

Mix in the melted butter and salt, then gradually incorporate the all-purpose flour until a dough begins to form.

Knead for 5-7 minutes until the dough is smooth and elastic. Place it in a greased bowl, cover, and let rise for 1 hour.

While the dough rises, mix shredded cheddar, cream cheese, garlic powder, onion powder, and any additional seasonings.

Punch down the dough gently, divide into 12 pieces, and roll each into 12-inch ropes.

Flatten each rope, add a spoonful of cheese filling, fold over, and pinch the edges to seal.

Bring a large pot of water to a boil, adding a little baking soda.

Submerge each pretzel in the boiling soda bath for 30 seconds on each side.

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