Mix 1 cup flour, sugar, salt and undissolved yeast. Heat 1 cup water and margarine to 120 to 130 degrees. Gradually add to dry ingredients; beat 2 minutes at medium speed of mixer. Add 1/2 cup flour.

Beat at high speed 2 minutes. Stir in enough additional flour to make a soft dough. On floured board, knead 5 minutes. Set in greased bowl; turn to grease top. Cover and let rise in warm, draft-free place 40 minutes. Divide dough into 12 equal pieces. Roll each into a 20-inch rope. Shape into pretzels or other shapes. Place on greased baking sheets. Cover; let rest 5 minutes. Mix egg yolk and 1 tablespoon water; brush on pretzels. Sprinkle with coarse salt. Bake at 375 degrees 15 minutes or until done. Cool on racks.