Set for dough cycle.Let the machine knead the dough once, and then let the dough rise for only 20 minutes in the machine. Even if your cycle runs longer, simply remove dough after 20 minutes and turn off the machine. Divide the dough into the appropriate number of pieces. Each piece should be rolled into a rope and made into a circle, pressing the ends together. You may find it necessary to wet one end slightly to help seal the ends together.
Place these on a well greased baking sheet, cover and let rise only 15 to 20 minutes. Meanwhile, bring to a slight boil in a "nonaluminum pan", (Donna German uses a cast iron frying pan) about 2 inches of water. Carefully lower about 3 or 4 bagels at a time into the water, cooking for about 30 seconds on each side. Remove bagels, drain on a towel, sprinkle with poppy seeds, sesame seeds or dried onion bits if desired and place on the greased baking sheet. Bake in a preheated 550 degree oven for 8 minutes.
This recipe is from Donna German's first Breadmachine Cookbook, pages 160- 161.