Combine water and milk in the bowl of a stand mixer fitted with a dough attachment. Scatter dry yeast and sugar on top and let it rest five minutes until the yeast foams up.
Add 2 cups of flour and stir it into a sticky mass and let it rest 15 minutes to absorb the liquids.
With the mixer running at low speed, add yogurt, egg, salt and olive oil. Gradually add remaining flour, 1 tablespoon at a time, until the dough is soft and slightly sticky.
Knead the dough for 6 to 8 minutes at medium-high setting. As the machine is running, the dough should pull away from the sides and hold on to the hook. Use flour as minimally as possible.
Properly kneaded dough should be soft, smooth, shiny and elastic. It should stretch without tearing. Check the window pane test.
Place the dough ball in an oiled bowl and roll it to coat with oil. Cover with cling wrap or a lid and let it rise in a warm place for about 1 hour (2 hours for active dry) and double in bulk (inside an oven that is not preheated works well).
Dough Balls, Rolling Naan and Baking
Preheat oven to the highest setting in your oven (550 degrees Fahrenheit in my oven). Place a baking stone, cast iron pan or an inverted baking sheet in the middle of oven.
On a lightly oiled surface, deflate the dough and divide it into 5 equal pieces. Roll the dough into smooth round balls, pulling the seams and tucking them underneath. Cover dough balls with kitchen towel or plastic wrap and allow to rest for 20 minutes.
Pat each dough ball. Holding a corner of the dough with one hand, press with fingertips and shape it out into a smooth triangle or oval naan, that is about ⅛ inch thick.Tip: It is not necessary to roll it out evenly or it will puff up.
Hold the wider side of naan and slap it on the hot baking stone. The side that was facing up on the working surface (exposed to air) should be facing up. Work with two naans at a time, depending on the size of the stone/pan.Tip: If naans are puffing up, press indentations in the rolled out naan before baking.
Let it bake 4 to 5 minutes, until you notice few puffed up brown spots.
Remove from oven and then brush butter or ghee on top. Then wrap in kitchen towel and pack in zip lock bags, to keep them soft and prevent drying out.
Meanwhile, melt butter or ghee over medium heat in a small sauté pan. Add grated garlic and cook for 1-2 minutes until fragrant. Strain the butter and set it aside. Discard the garlic.
Stove Top (Optional Method)
Preheat cast iron skillet for 5 minutes at medium high setting. When you place your palm 3 inches above the skillet, you should feel the heat.
Place the naan on hot skillet and cook for 2 to 3 minutes, until you notice few puffed up spots and the bottom turns light brown. Flip the naan and cook the other side for 2 to 3 minutes until brown blisters appear. If needed, flip naan to finish cooking. Cool and store naan as mentioned above.
Dry Yeast: Use thermometer and check temperature recommendations. 110 degrees F for active dry yeast and 125 degrees F for rapid rise yeast.
Best Naan: Baked at highest possible temperature and in shortest possible time.
Dough by Hand: Stir all ingredients using a strong wooden spoon. Then simply knead for 8 to 10 minutes.
Storage: These naan will be good for 1 to 2 days at room temperature. And can be refrigerated for 2 to 3 days. Do not leave them exposed to air for hours.
Freeze: Frozen naan will last a couple months. Wrap in foil and reheat in oven at 350 degrees Fahrenheit for 5 minutes.
Leftover Dry Naan: Lightly spray dried naan with water and reheat at 350 degrees F for 2 to 3 minutes until warm.