In a medium sized bowl mix water and sugar and sprinkle yeast on top. Set aside until activated (foamy), approximately 5 minutes.
Meanwhile, in a large bowl mix flour and salt.
Add yogurt and milk to activated yeast and mix. Make a well in the flour and slowly add the milk yeast mixture, incorporating the sides of the well as you mix (like you would when making pasta). Mix well until smooth and then on a lightly floured surface, knead for 3-4 minutes.
Return to bowl, cover with plastic wrap and let rise until doubled. Approximately an hour.
When risen take dough and split in half. Then split those halves into thirds and then those thirds in half until you have 12 evenly sized balls.
Heat skillet to medium. Roll a ball into a circle or an oval and brush one side with butter. Add the dough butter side down into the skillet and quickly brush the other side with more butter. Let cook until bubbles begin to form - approximately 2 minutes - then flip and cook another 90 seconds.
Stack naan on plate and cover with towel to keep warm while you roll out each dough.
Add garlic to remaining butter and then microwave naan to warm and brush with remaining butter.
Serve immediately.