1. Measure 1/2 cup warm water into a bowl. Sprinkle yeast on the water and stir until blended and yeast is dissolved. Set aside.
2. Separate egg, reserving white.
3. Mix yolk, honey (or sugar), butter and milk into yeast mixture.
4. Add salt and enough flour to make a stiff, easy to handle dough.
5. Knead dough on a floured surface for 5 minutes, cover and let rise 1 hour. Cut into strips about 1" wide. Fold each strip in 1/2 and roll into a rope.
6. Shape ropes into desired shape and place on baking sheet.
7. Beat 1 T water and egg white until well blended. Brush mixtures onto pretzel. Sprinkle with coarse salt.
8. Bake at 425º until golden brown, about 15-20 minutes.