In a mixing bowl, combine the warm water, instant yeast, and sugar. Stir gently and let it sit for about 5-10 minutes until it becomes frothy.
Add the olive oil, plain yogurt, and egg to the yeast mixture. Mix until well combined.
In a separate bowl, whisk together the salt and 2 cups of all-purpose flour. Gradually add the flour mixture to the wet ingredients, mixing until a dough begins to form.
Turn the dough onto a floured surface and knead for about 5-7 minutes until it becomes smooth and elastic.
Place the kneaded dough in a lightly oiled bowl, cover it with a kitchen towel, and let it rise in a warm place for about 1 hour, or until it has doubled in size.
Once risen, punch down the dough and divide it into 6-8 equal portions. Roll each portion into a ball and then flatten it into an oval or circle, about ¼ inch thick.
Heat a skillet or griddle over medium-high heat. Place one naan in the skillet and cook for about 1-2 minutes, or until bubbles form. Flip and cook for another 1-2 minutes until golden brown.
Brush the cooked naan with garlic butter while it’s still warm.
Stack the cooked naan on a plate and cover with a kitchen towel to keep warm until ready to serve.