Add the milk and the butter to a small microwave-safe bowl, and heat until just warm and the butter is melted. You'll want to milk to be no warmer than 110 degrees F. when you use it.
Add the flour, baking powder, yeast, and salt to a medium mixing bowl, and stir to combine.
Make a well in the center of the flour mixture, and pour the milk/butter into the center of the well.
Stir to combine well.
Dump the mixture out onto a lightly floured surface, and knead it a few times to work the dough into a smooth ball. If the dough is sticky, add a bit more flour.
Cover the dough ball with a clean dish towel, and let it rest for 10 minutes.
While the dough is resting, heat the oil over medium to medium-high heat in a heavy bottom Dutch oven or pan. Prepare a baking sheet with a layer or two of paper towels.
After the 10 minutes have passed, cut the dough into 8 even pieces
Use a rolling pin to roll the dough into 1/4-inch thick circles, using additional flour as needed. Don't stack the uncooked dough on top of each other, as they tend to stick together.
When the oil has reached 350 to 375 degrees F. on a thermometer, start cooking the dough, a few at a time, depending on the size of your pan. Don't crowd the pan; they shouldn't touch while cooking.
Cook for roughly 90 seconds per side, or until each side is golden-brown. Flip the dough over after 90 seconds or when the oil side is golden, and cook the other side until it is also golden-brown.
Use a slotted spoon to remove from the oil, and place on your paper towel-lined cooking sheet.
Repeat with remaining dough until it's all cooked.
Serve with Navajo taco toppings or with honey butter on top.
Notes
This recipe is really easy to scale up as needed. I've made it successfully even quadrupling the batch. I just roll and fry at the same time and keep the cooked pieces of fry bread in a 200 degree F. oven to keep them hot before serving.