In a small bowl, whisk together yeast, sugar and 1/4 cup water to dissolve yeast. Let stand 5 minutes.

Meanwhile, in a large bowl or bowl of a stand mixer, whisk together flour, salt and baking powder. Add yeast mixture, garlic, milk, sour cream (or yogurt), egg, vegetable oil and 3/4 cup water and stir to combine. In stand mixer fitted with dough hook or by hand on a lightly floured surface, knead dough until smooth and elastic (about 5 minutes in a stand mixer at medium speed, 10 minutes by hand.) Shape dough into a ball and place in a lightly greased bowl. Cover with plastic wrap or a dish towel and let rise until doubled, about an hour.

Punch down risen dough and divide dough into 12 equal pieces. Shape each piece into a ball and place on a well-floured baking sheet. Cover with a damp towel and let rise until doubled, about 45 minutes.

On a lightly floured surface, roll out each piece of dough into an oblong circle about 8 inches in length. Stack circles on top of each other on a plate, divided by parchment paper, and set aside.

Heat a skillet over medium-high heat. Place on pan 1-2 minutes, until bubbles form on top. Flip and cook about 1 more minute. Repeat.

Butter if desired and top with chopped cilantro or parsley.

Serve naan warm.