Mix yeast and sugar into 1/2 cup of water, leave for 5 minutes then stir to dissolve. In a separate bowl mix flour and salt together, then pour in dissolved yeast mixture.
Pour half of the water into flour mix than stir in remaining water as needed. Put dough on a floured surface and knead until smooth. Gradually work in some extra flour until it forms a stiff dough. Put dough ball in an oiled bowl, turning the dough to coat it. Cover with a towel and let rise for an hour, until it about doubles in size. Punch down and then let rise for another 10 minutes (i don't know how necessary this step is, but its a great stress reliever).
Divide dough into 8 pieces. Shape each piece into a ball, pressing out air bubbles as you shape it. Take one flour coated finger and push it through each ball to form a ring. Slowly stretch the hole(I didn't make the hole large enough and some of the bagels expanded to become rolls while baking). Put bagels on oiled baking sheet and cover with damp paper towels, let sit for 10 minutes. Preheat oven to 425.Bring a large pan of water to a boil, then reduce to a simmer. Carefully put bagels in the water, boil for a minute or so until they rise, turn over and boil for another minute.