Bite-sized nuggets of soft pretzel dough are baked golden-brown, rolled in butter and cinnamon sugar, and served with a sweet cream cheese dipping sauce.
In a large mixing bowl, combine 2 cups of flour, the sugar, the yeast, and the salt. Set aside.
In a small saucepan, slowly heat the milk, water, and oil to about 120°F.
Carefully pour the warmed milk into the flour mixture, and stir until just combined. Gently fold in the remaining 2 cups of flour until a soft dough forms.
Knead on a floured surface (or in a stand mixer with a dough hook) for about 4 to 6 minutes, or until dough is smooth and slightly elastic in texture. Cover dough with plastic wrap and let rest in a bowl for 10 minutes.
Divide the dough into 6 equal pieces. Roll each piece into a roughly 16-inch rope. Cover the dough again and let rest for another 5 minutes.
Preheat the oven to 425°F.
Line 2 baking sheets with parchment paper.
Cut each dough rope into roughly 1-inch pieces. Arrange the pieces on the lined baking sheets and brush with egg.
Place in the oven and bake for 12 to 15 minutes, or until golden brown.
While the pretzel bites are baking, mix together the cinnamon and sugar in a small bowl.
Remove the pretzel bites from the oven, and allow to cool.
Brush the cooled pretzel bites with melted butter, and use a spoon to roll them in the cinnamon sugar mixture until coated. Place the finished bites on a serving platter.
For the Cream Cheese Dipping Sauce
In a large bowl with an electric mixer, beat cream cheese for about 1 minute. Slowly add in powdered sugar and beat until smooth and creamy.
Add in the vanilla extract and mix until smooth. Gradually add in the milk, until a creamy texture has formed.
Serve pretzel bites warm with the cream cheese dipping sauce.