Whisk the water and yeast together in a small bowl. Set aside for 5 minutes.

Combine flour, sugar and salt in a mixing bowl.

Add in the water and yeast and stir with a wooden spatula until the dough becomes dry and difficult to stir.

With lightly floured hands, knead the dough until it holds together, about 4 or 5 minutes.

Cover the bowl with a towel and let it rise for 2 hours or until doubled in size.

When the dough is ready, punch it down, then divide it into 12 pieces. Next, press in chocolate chips and shape them into balls.

Flatten the balls, poke a hole in the middle and shape them into bagels. Set aside while preparing the water.

Preheat the oven to 400°F with a cast iron skillet. (you will need 2 12" skillets to fit the bagels)

Bring 2 quarts of water to a boil and whisk in a tablespoon of sugar and baking soda.

Carefully drop 2-3 bagels in at a time for 2 minutes, flipping once.

Remove the skillets from the oven, lightly grease the bottom and place the bagels in.

Bake for 18-20 minutes.

Transfer bagels to a cooling rack for 15-20 minutes before serving.