Place warm water in large warm bowl. Sprinkle in yeast; stir until dissolved. Add milk, oil, sugar, salt and 1½ cups flour; blend well. Mix in additional flour to make soft dough. Knead on lightly floured surface until smooth and elastic, about 5 minutes. Place in greased bowl, turning to grease top. Cover; let rise until doubled in size, about 30 minutes. Punch dough down; divide into 24 pieces. Roll each piece to 16-inch rope. To make pretzels, curve ends of each rope to make circle; cross ends at top. Twist ends once and lay down over bottom of circle.
Place pretzels on greased baking sheets. Cover; let rest in warm, draft-free place for 5 to 10 minutes, until risen slightly. Preheat oven to 350°. Brush pretzels with beaten egg mixture and sprinkle with selected topping.
Bake at 350° for 35 minutes or until golden. Cool on wire rack. Makes 24 (1.5 oz.) pretzels.