In a small bowl, combine the warm water, yeast, and sugar. Let it sit for 10 minutes, until the yeast is foamy.
In a large bowl, whisk together the flour and salt.
Pour in the yeast mixture and knead until you have a soft, elastic dough.
Cover and let rise in a warm place for about 1.5 hours, or until doubled in size.
Divide the dough into 8 equal portions, and shape them into small discs.
Press down the center of each disc with your fingers to create a depression.
Fill the depressions with finely chopped onion, then sprinkle with poppy seeds.
Preheat the oven to 430°F (220°C) and bake the bialys for 12-15 minutes, or until golden brown.
Let cool on a wire rack, then serve fresh with butter or cream cheese.
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