Combine the 1 cup water, yeast, and butter in the bowl of a stand mixer and mix with the dough hook for about 30 seconds, until combined. Allow the yeast mixture to sit for 5 minutes.
Add the salt and flour to the bowl, and mix on low speed until combined. Then mix on medium speed, and knead for 4 minutes, until the dough is smooth.
Remove the dough from the bowl, form into a ball.
Add the dough to a greased bowl, and coat the dough with the oil. Cover with plastic wrap and set the bowl in a warm spot for 1 hour, until the dough has doubled in size.
Once the dough is ready, preheat the oven to 425 degrees, and spray a baking sheet with cooking spray.
Bring the 8 cups of water to a boil in a large pot. Slowly, and very carefully add the baking soda to the water. If you’re not slow and careful, it will boil over.
Cut the dough into 8 equal pieces. I find it easiest to cut it like a pie. Roll each piece into a 12 inch rope, then cut into 8 pieces.
Carefully add the pieces of dough to the pot of boiling water in batches of about 1 ½ dozen, and boil for about 30 seconds. Remove with a large slotted spoon, and place on the baking sheet, slightly spacing them apart.
Add the egg and 1 teaspoon of water to a small bowl, beat, then brush the egg wash over the tops of the pretzel bites. Lightly salt with table salt or coarse salt.
Transfer the baking sheet to the oven and bake for 15 minutes, flipping halfway through, until golden brown. Remove from the oven, and allow to cool for 5-10 minutes before eating.
To make the cheese dip, add the Velveeta and Rotel to a microwave safe bowl, and heat in one minute increments, stirring between each heat session, until the cheese is melted; about 3-4 minutes. Serve with pretzel bites.