In a large bowl mix butter with lard, egg and oil. Dissolve yeast in milk and add to butter mixture. Add flour, salt and cheese and knead until the dough is smooth and pulls away from the side of the bowl. Cover the bowl with plastic wrap and refrigerate for 1 hour, to let the yeast develop.

Preheat the oven to 180C (350F). 

Split the dough in 2 3 pieces, roll out each piece on a floured surface to a rectangular of 1/4" thick and cut pretzels using a pretzel cutter. Place the pretzels onto a baking tray. (you will need 2 baking trays). Add the left-over dough to the other pieces and repeat this step until all dough is done.

Beat egg and brush over pretzels. Sprinkle with sesame seeds and bake for 20-25 minutes until golden-brown.