In a large bowl, combine 2 cups flour, sugar, yeast, and salt. Add milk and butter and stir well to mix.
Turn dough out onto a flour-covered surface and knead 5-7 minutes, adding more flour as needed to prevent sticking. The dough should feel slightly tacky, but should not stick to the countertop. Place in a greased bowl, cover, and let rise in a warm place for 1 hour, or until doubled.
Once risen, preheat oven to 450°F and line two baking sheets with parchment or silicone liner. Add 2 ½ quarts water and baking soda to a large pot at set to boil.
Gently deflate dough and turn out onto a clean surface. Divide dough into 8 evenly sized portions, then roll each portion into a rope about 20 inches long.
To shape large pretzels , make a u shape, then twist over ends and press onto bottom of the U to form pretzel shape.
Lower pretzels into the water, in batches, and boil for about 30 seconds, then flip and boil another 30 seconds.. Remove and let dry slightly on a wire rack set on paper towels. Repeat until all are boiled.
Whisk together egg and 1 tablespoon water. Transfer boiled pretzels to lined bakng sheets and brush egg over the pretzels. Sprinkle on coarse salt.
Bake for 14-16 minutes, until dark golden and glossy. Rotate pans halfway through baking time for even browning, if needed. Cool slightly and serve.