Pretzel Bites with Quick Cheddar Dip

Stir together warm water and yeast in a large bowl and let stand until a creamy beige foam develops on the surface, about 10 minutes. (If mixture doesn't foam, start over with new yeast.) Meanwhile, in a smaller bowl, stir together flour, salt, and light brown sugar. Add flour mixture and butter to yeast mixture, and stir together first with a wooden spoon and then with your hands, until it forms a dough. On a lightly floured surface, knead dough until it is smooth and elastic, 8 to 10 minutes, dusting with more flour as needed if dough sticks to work surface. Transfer dough to a lightly oiled large bowl and turn over to coat with oil. Cover with a kitchen towel (not terry cloth) and let rise in a draft-free place at room temperature until doubled, 2 to 3 hours. Alternatively, after kneading, let dough rest at room temperature for 15 minutes, then transfer to oiled bowl as above, and let rise in the refrigerator overnight (12 hours or up to 2 days). Punch down dough and divide into quarters. Form each quarter into 4 balls. Roll each ball into a 12-inch-long rope. Cut each rope into six (2-inch) pieces, and transfer to wax paper-lined rimmed baking sheets.