Mix yeast and sugar with 1/4 c water. Set aside until bubbly. Place flour and yeast mixture into a mixing bowl and blend to form a dough. Knead on a floured surface for about 5 minutes, until smooth and elastic. Place in a greased bowl, cover, let rise 1-1 1/2 hours. Punch down and shape the pretzels as follows: Divide dough into 12 pieces and shape into sticks 6 inches long. Shape into knots. Place on greased cookie sheets. Cover and let rise 45 minutes. Glaze with 1 egg beaten with 1 T of water. Sprinkle tops of pretzels with coarse salt or sesame seeds. Preheat oven to 475F and bake for 10 minutes. Cool and store in airtight container.