In a large bowl, combine 2 cups flour, sugar, undisolved yeast, and salt. Heat milk, water, and oil until very warm (120 to 130 degrees F); stir into dry ingredients. Stir in enough remaining flour to make soft dough. Knead on floured surface until smooth and elastic, about 4 to 6 minutes. Cover with plastic wrap and a clean towel; let rest on floured surface 10 minutes.

Divide dough into 14 equal pieces (as you can tell from my picture, I chose unequal pieces!). Roll each piece to 20-inch rope (or shorter depending on the amount of dough you are using per pretzel). Place on floured surface, cover with plastic wrap and clean towel; let rest 5 to 10 minutes until risen slightly. Meanwhile, grease your baking sheets! To shape into pretzels: Curve ends of each rope to make a circle; cross ends at top. Twist ends once and lay over bottom of circle. Place on 2 greased baking sheets.

Brush with beaten egg and sprinkle with poppy seed, sesame seed, salt, or cheese (or leave plain). Bake at 350 degrees F for 15 minutes or until done. Remove pretzels from baking sheets; let cool on wire racks.