Scald the milk, then let it come to room temperature. Add the sugar and yeast,
stirring to dissolve them. Let the mixture stand in a warm place, until it
starts to bubble, about 15 minutes.|
Place the flour in a mixing bowl (or the bowl of your electric mixer), and add the salt, baking powder, oil, yogurt, and egg. Using your fingers or a dough hook if using your mixer, work them into the flour until it's clumpy. Gradually add the milk mixture, and knead until a smooth dough forms, about 5-7 minutes. Transfer to a greased bowl (or remove the dough from it's mixer bowl, grease the bowl, and return dough to that bowl), cover with a cloth, and let it rise in a warm place. The dough should double in size in about an hour.
When the dough has doubled in size, punch it down. Divide the dough into 12 balls of equal size. Warm a griddle over medium heat. Roll each ball into a circle about 7 inches in diameter, dusting with flour to prevent sticking. Bake on one side, and flip when the bottom is lightly browned and the surface is lightly bubbled. Remove from heat when the other side is also lightly browned in spots. Wrap the baked naan in a clean dishtowel for keeping warm, and serve with butter and your favorite Indian dish.
Naan can be frozen, and reheated, and they're also excellent cold, eaten as a snack.