Combine the milk and sugar in a small bowl, sprinkle over the yeast and set aside for 5 -6 minutes or until foamy.
Sift the flour, salt and baking powder into a large bowl. Add the yeast mixture, oil, yogurt and egg. Stir with a wooden spoon to form a coarse dough.
Turn out onto a lightly floured work surface and knead for 10 minutes or until smooth and elastic. Shape into a ball and place in an oiled bowl, turning to coat. Cover the bowl with plastic wrap and set aside in a warm, draught free place for 1 hour or until doubled in size.
Preheat the oven 475 degree. Preheat a large, heavy-based baking tray in the oven.
Knock back the dough with just one punch to expel the air and divide it into 6 portions. Roll each portion into a ball, place on a lightly greased baking tray and over with plastic wrap. Working with one ball at a time, use a rolling pin to roll out onto a lightly floured work surface into a rough oval, about 10 inches long and 5 inches wide.
Working quickly, remove the hot baking tray from the oven and slap 2 naan onto it. Immediately place in the oven and bake for 3 minutes or until puffed. Transfer to a large dish towel to keep warm. Repeat to cook the remaining naan.