In a small bowl, combine the yeast, sugar, and warm water. Stir until dissolved and let sit for several minutes until frothy.
Whisk in the olive oil, yogurt, and egg until smooth and fully combined.
In a separate medium bowl, mix 1 cup of flour with the salt.
Pour the wet mixture into the flour mixture and stir well. Gradually add more flour, about 1/2 cup at a time, until the dough becomes too thick to stir.
Transfer the dough to a lightly floured surface and knead for about 3 minutes until smooth and soft. Add small amounts of flour as needed to prevent sticking. The Homemade Naan Bread dough should remain soft, not dry.
Cover the dough loosely and let it rise for about 1 hour or until doubled in size.
Gently flatten the dough and divide it into 8 equal portions. Shape each piece into a ball.
Heat a heavy skillet over medium heat.
Roll one dough ball into a circle about 1/4 inch thick.
Place the dough into the hot skillet and cook until bubbles form and the underside is golden brown.
Flip and cook the other side until golden and cooked through.
Repeat with the remaining dough. Keep cooked naan warm under a clean towel.
Serve warm plain or brushed with melted butter and herbs.