I suspect that cutting the recipe in half, and only using 3.5 cups of flour, would work in the dough cycle of a bread machine which can make a 1.5lb loaf. You'd be able to adjust the flour after the rising, and before finishing the bagels by hand. The only thing I'd change would be to add a resting period between adding any extra flour, and shaping the bagels, just to let the moisture redistribute itself properly.
Robin
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