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 lower 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.
Notes
Be very careful around the boiling water and hot cast iron skillet!
The temperature of your house will play a HUGE role in rising time. We want it to nearly double in size. If it doesn't double in size, try placing it near a sunny window.
The bagel dough may appear dry when kneading it. Please don't add any extra water; it will come together in the end.
Always preheat the oven.
Do not over-grease the skillet, or the bottom of the bagels may get too crispy. Alternatively, you can line the skillet with parchment paper to eliminate the need to preheat the skillets.
You don't have to boil the bagels before baking, but it will result in a stronger, chewier crust.