In a bowl, combine the water and sugar and stir to dissolve. Pour in the yeast and allow this to sit for 6-8 minutes.
In a larger bowl, whisk together the flour and 1 1/2 teaspoon salt. Once the yeast mixture has had time to activate, pour it in to the flour mixture and stir until a crumbly dough forms. Turn out onto a floured surface and knead for 6-7 minutes until the dough begins to become elastic-like. You can also do this in a stand mixer with a dough hook attachment. Place the dough in a lightly oiled bowl, cover and allow to rise in a warm place for 1 hour.
Turn the dough out onto a lightly floured surface and divide into eight equal pieces. Shape into a ball and press your finger through to form the center hole. Once you have shaped all the bagels, allow them to rest for 10 minutes or so. Now place them into a pot of boiling water. They should float. Let them cook for 45 seconds to 1 minute on each side, then remove to your prepared baking sheet.
Turn the dough out onto a lightly floured surface and divide into eight equal pieces. Shape into a ball and press your finger through to form the center hole. Once you have shaped all the bagels, allow them to rest for 10 minutes or so. Now place them into a pot of boiling water. They should float. Let them cook for 45 seconds to 1 minute on each side, then remove to your prepared baking sheet.
Whisk the egg plus 1 teaspoon water in a small bowl and brush this over each bagel. Sprinkle on the seeds! The egg wash will help them stick as well as add a pretty brown sheen to your bagels.
Eureka! After you add the seeds bake at 425°F for 20 minutes. If you don't eat them all in one day, store in an airtight container for 4-5 days.
What's sort of strange about making bagels is you have to boil the dough before baking. This process creates a chewy interior crumb while the outside is browned and almost crisp.