In a large mixing bowl (or stand mixer bowl), combine the warm water, 1 teaspoon of granulated sugar, and active dry yeast. Stir gently and let it sit for 5-10 minutes until foamy, indicating the yeast is active.

Add the remaining 1/4 cup granulated sugar, salt, and vegetable oil to the yeast mixture. Gradually add the bread flour, 1 cup at a time, mixing with a wooden spoon or the dough hook on low speed until a shaggy dough forms.

Increase mixer speed to medium-low (or turn the dough out onto a lightly floured surface) and knead for 8-10 minutes until the dough is smooth, elastic, and passes the windowpane test. If kneading by hand, this may take 12-15 minutes.

Incorporate the chocolate chips. Knead for another 1-2 minutes until the chocolate chips are evenly distributed throughout the dough.

Lightly grease the mixing bowl. Form the dough into a ball and place it in the greased bowl, turning once to coat. Cover the bowl with plastic wrap or a damp towel and let it rise in a warm place for 60-90 minutes, or until doubled in size.

Gently punch down the risen dough to release the air. Turn it out onto a lightly floured surface. Divide the dough into 8 equal pieces (approximately 110-120g each if using a scale).

Shape each piece of dough into a tight ball. To create the bagel hole, poke a hole in the center of each ball with your thumb, then gently stretch the dough around your finger to create a 1-inch (2.5 cm) diameter hole. Try to keep the thickness even.

Place the shaped bagels on baking sheets lined with parchment paper, leaving space between them. Cover loosely with plastic wrap or a damp towel and let rise for another 30-45 minutes, or until slightly puffy.

Preheat your oven to 425°F (220°C). Bring 8 cups of water to a rolling boil in a large pot or Dutch oven, then add the baking soda.

Gently drop 2-3 bagels into the boiling water (don't overcrowd the pot). Boil for 30 seconds on each side, then carefully remove with a slotted spoon and place back on the parchment-lined baking sheets.

In a small bowl, whisk the egg with 1 tablespoon of water to create an egg wash. Brush the tops of the boiled bagels with the egg wash.

Bake for 18-22 minutes, or until the bagels are golden brown and cooked through. If desired, you can sprinkle a few extra chocolate chips on top halfway through baking.

Transfer the baked bagels to a wire rack to cool completely before serving.