1. Place warm water, sugar, salt, flour, and yeast in the bread machine pan in the order recommended by the manufacturer. Select Dough setting.
2. When the cycle is complete, let dough rest on a lightly floured surface. Cut dough into 8 equal pieces and shape each piece into a smooth ball. Poke a hole in the middle of each ball and stretch the hole to about 1.5 inches in diameter. Cover bagels with a clean cloth and let rest for 10 minutes.
3. Preheat oven to 425°F (220°C). Bring a large pot of water to a boil and add 3 tablespoons of sugar.
4. Carefully transfer bagels to the boiling water, a few at a time. Boil for 1 minute, turning halfway through. Remove with a slotted spoon and place on a baking sheet.
5. Bake in preheated oven for 20 minutes, until golden brown.