In a large mixing bowl, combine the warm water, honey, and active dry yeast. Stir gently and let it sit for about 5-10 minutes until frothy.
Once the yeast mixture is frothy, add the melted butter and mix well. Gradually add the all-purpose flour, stirring until a dough begins to form. Knead the dough for about 5-7 minutes until smooth and elastic.
Place the dough in a lightly greased bowl, cover with a clean kitchen towel, and let it rise in a warm place for about 1 hour, or until doubled in size.
Punch down the dough to release air. Divide into 12 equal pieces. Roll each piece into a 12-14 inch long rope, then shape into a knot by crossing the ends and tucking underneath.
Before fully shaping the knots, add a spoonful of basil pesto and a generous amount of shredded cheddar and mozzarella to the center of each knot. Finish shaping, ensuring cheese is tucked inside.
Preheat oven to 425°F (220°C). Line a baking sheet with parchment paper. Beat the egg and brush over each pretzel knot. Sprinkle sesame seeds on top.
Bake knots for 12-15 minutes until golden brown. While baking, melt remaining butter in a saucepan and sauté chopped garlic until fragrant.
Remove knots from oven and immediately brush with garlic butter. Sprinkle freshly grated parmesan cheese and chopped herbs on top.