Using a stand mixer with a dough hook attachment, combine all dough ingredients (flour, sugar, malt powder, yeast, salt, milk, and butter) and mix on a low speed until the dough comes together as a smooth cohesive mass (5-10 minutes).
The dough should be slightly sticky. If it's too dry and won't come together, add an additional tablespoon or two of milk. If the dough is too sticky, add in an additional tablespoon or two of flour.
Cover the dough and let it rise in a warm place for 1 hour; it will rise minimally.
Turn the dough out onto your work surface (you shouldn't need to flour your work surface) and fold 2-3 times to gently deflate it. Divide the dough into 8 equal pieces.
Take your first piece and roll into a rope that's about ½ inch wide. Using a bench knife or pizza cutter, cut the rope into 1 ½ inch pieces. Then repeat with the remaining pieces of dough.
Preheat oven to 350°F and line a baking sheet with parchment paper.
Bring a large pot of water to a rolling boil. Add in 2 tablespoons of baking soda.
Boil the pretzel bites for about 30 seconds and then place on your lined baking sheet. It should take 3-4 batches to boil all the pretzel bites. Do not skip this step! It might seem unnecessary, but this is what gives the pretzel bites their signature look and texture.
Sprinkle the pretzel bites with coarse pretzel salt and bake the pretzel bites at 350°F for 15-25 minutes or until golden brown.
While the pretzel bites are baking, make the mustard cheese dip.
Mustard Cheese Dip
Melt the butter in a saucepan over medium-low heat. Then whisk in the flour and cook for 1 minute.
Pour in the whole milk and continue to whisk for 2-3 minutes until the sauce begins to thicken slightly.
Add in the cheese, mustard, and cayenne and whisk until the cheese is fully melted and the sauce is smooth.
Notes
These soft pretzel bites are best eaten the same day. But they will keep covered at room temperature for 2-3 days. I like to crisp them back up in the oven for 5-10 minutes before eating.Store leftover cheese dip in the fridge for up to 3 days.