Place all ingredients in bread machine and set for normal white bread. Let the machine knead once and then turn off the machine and set a timer for 20 minutes. When time is up remove dough and cut into eight equal pieces. Roll each piece into a rope about 1 inch thick, wet ends and stick together. Put all bagels on a greased cookie sheet, cover and let rest for 15 minutes in a warm place.
Fill a wok (or whatever you use) with about three inches of water. Place two tablespoons of sugar in this water and bring to a boil. After the bagels rise for the fifteen minutes add them to the boiling water for 1 minute turning them as they boil. Drain and place on the greased cookie sheet again ( sprinkle with toasted sesame seeds if you like). Bake at 550F for 15 minutes or until desired browning occurs.