In a large mixing bowl combine the warm water and yeast. Let stand for 5 minutes or until it is foamy. Mix in the sugar and salt.

Slowly mix in 2 cups of flour. Turn onto a floured surface and knead in the remaining cup of flour. Continue kneading for about 10 minutes or until the dough is smooth and no longer sticky.

Place in a greased bowl and cover. Allow to rise for 1 1/2 hours or until doubled.

Cut the dough into 8 equal pieces. Knead each piece into a small ball and poke your thumbs through the center. Work the dough into a donut shape that is about 2 inches in diameter. Place on a cookie sheet. Repeat with the remaining half of the dough. Let all of the bagels rest for 20 minutes.

Bring the water and sugar mixture to a boil in a large pan. Preheat the oven to 400 degrees.

Drop the bagels into the boiling water 2 at a time. Allow to boil for 30 seconds on each side. Lift the bagels out of the water with a slotted spoon and briefly drain on a paper towel, then place on a baking sheet. Repeat with remaining bagels.

Brush each bagel with the egg yolk. Sprinkle the bagels with kosher salt.

Bake for 20 minutes or until the bagels are browned. Remove from oven and cool on a wire rack.