Line a cookie sheet (15x10x5" baking pan) with aluminum foil.
Place the pretzels in a single layer on the baking sheet.
Place an unwrapped Hershey's Hug candy on top of each pretzel.
Put the cookie sheet in the oven for 3-4 minutes, until the Hug starts to get soft. You don't want it to be completely melted, but just soft enough that you can press a candy into it.
Remove the cookie sheet from the oven and place 1-2 M & M candies on each pretzel, gently pressing down to help spread the Hug out across the entire pretzel.
Place cookie sheet in the fridge so that the bites can set up quickly.
Once completely cooled, bag up the bites in cellophane bags and tie a cute bow on them for the perfect neighbor gift!