Heat the milk in a small saucepan over medium heat until it just begins to boil. Remove from heat and let stand until cooled to room temperature. Meanwhile, sprinkle the yeast over the warm water in a large bowl. Add 1 Tablespoon of the sugar; let stand until foamy (about 5 minutes). Beat in the remaining sugar, eggs and butter. Beat in cooled milk.
Gradually add the flour and salt, scraping down side of bowl, until a soft dough forms.
Turn dough onto a floured work surface and knead the remaining flour into the dough, adding more flour if too sticky. Knead for about 10 minutes until smooth. The dough will be soft.
Grease a large bowl. Place the dough in the bowl. Cover with plastic wrap and place in a warm spot until doubled in size, about 1 1/2 hours.
Line 2 baking pans with parchment paper. Divide dough into 12 pieces and roll each piece into a 17"-long rope. Form rope into a U shape. Lift top of left end; fold over or under opposite side; press together gently about two-thirds down from the top of right side. Lift right end up, fold over, and press in or tuck under, forming a pretzel shape. Repeat with remaining dough.
Place 6 pretzels on one sheet and 6 on the other with 2 inches space between them.
Brush with egg wash and loosely cover with plastic wrap. Let sweet pretzels rise for about 20-30 minutes.
While the pretzels are rising, heat the oven to 350F.
Brush on another coat of the egg wash. Sprinkle on the pearl sugar. Bake until pretzels are golden brown and cooked through, 15 minutes (every oven is different so make sure your pretzels aren't too brown. Mine took about 16 minutes). Rotate trays around about 1/2 way during baking time. Transfer sweet pretzels to a wire rack and let cool for at least 10 minutes before serving.