In large bowl, combine 2 cups flour, 1/2 cup sugar, salt and yeast; mixwell. In small saucepan, heat water, milk and 1/2 cup margarine until very warm (120 to 130°F.). Add warm liquid and egg to flour mixture; blend at low speed until moistened. Beat 3 minutes at medium speed.
By hand, stir in an additional 3 cups flour until dough pulls away fromsides of bowl.
On floured surface, knead in remaining 1 to 2 cups flour until dough is smooth and elastic, about 5 minutes.
Place dough in greased bowl; cover loosely with plastic wrap and cloth towel. Let rise in warm place (80 to 85°F.) until light and doubled in size,about 45 minutes.
Grease 2 cookie sheets. Punch down dough several times to remove all air bubbles. In small bowl, combine 1/3 cup sugar and cinnamon; set aside.Divide dough into 3 equal parts.
On lightly floured surface, roll each part into 25x6-inch rectangle.Spread each with 1 tablespoon margarine. Sprinkle with sugar-cinnamon mixture. Starting with longer side, roll up tightly; pinch edges to seal.Twist each roll, stretching slightly. Form into pretzel shape; tuck ends under to seal. Place on greased cookie sheets. Cover; let rise in warm place until doubled in size, about 30 minutes.
Heat oven to 350°F. Uncover dough. Bake 20 to 30 minutes or until deep golden brown. Immediately remove from cookie sheets; place on wire racks.
In small saucepan, combine all glaze ingredients. Bring to a boil, stirring constantly. Spoon hot glaze over warm loaves, completely covering tops and sides.