Place all of your ingredients in the order listed above (water, milk, egg, butter, sugar, flour, salt, and yeast)

Set the bread machine to the 'dough' setting and press start

Punch down the dough in the pan when the machine cycle is done and let it rest for 10 minutes

Remove dough from the bread machine and divide it into eight equal pieces, then shape each piece of dough into a small ball

Coat your finger in flour and press into the center of each dough ball to form a ring

Swirl your bagel dough around your fingers to shape it into a bagel shape

Cover bagels with a towel and let them rest while preheating the oven to 350

Bring a large saucepan of water to a boil

Place 2-3 bagels into the boiling water and let them sit for 1 minute on each side

Remove from water and place on a baking sheet lined with a silicone mat or parchment paper

Brush bagels with egg wash and add desired toppings

Bake at 350 for 20-25 minutes or until golden

Serve with butter, cream cheese, or toppings of your choice