Reserve 1-1/2 tablespoons sugar to top pretzels. Combine remaining sugar, 2 cups flour, undissolved yeast, salt, orange peel and dried fruit in a mixer bowl. Heat buttermilk and butter until very warm (120° to 130°F); buttermilk will look curdled. Add to flour mixture with egg and beat for 3 minutes. Stir in enough remaining flour to make soft dough. Knead on floured surface until smooth and elastic, about 8 to 10 minutes. Place in a greased bowl, turning once to coat. Cover and let rise in a warm draft-free place for about 1 hour, or until doubled in size.
Punch down dough and divide into 12 equal pieces. Roll each piece to 16-inch rope. Shape into a pretzel by first making a U shape. Holding the ends of the rope, cross them over each other. Twist ends once, and lay (then press to seal) over bottom of circle, stretching sides of pretzel.
Combine boiling solution ingredients in a large pot and bring to a boil. Add 2 to 3 pretzels to boiling water solution for 1 minute, turning once. Remove pretzels from pot with a slotted spoon and place on a parchment or greased foil-lined baking sheet. Sprinkle pretzels with reserved sugar.
Bake pretzels on upper racks in a preheated 400°F oven for 15 to 20 minutes or until golden brown. Let cool on a wire rack.
Combine dipping sauce ingredients in a small saucepan and stir until melted. Serve with pretzels.