In a large bowl, stir together the water, yeast and sugar and let stand for 5 minutes, until foamy. If it doesn't foam, the yeast is inactive; toss it out!
Stir in the flour, salt, canola oil, yogurt and egg and stir, then knead until you have a soft, pliable dough. Cover with a tea towel and let rise until doubled in size; about an hour.
Divide the dough into 6-8 pieces and on a lightly floured surface, roll out each piece into a thin circle or oval.
Cook each naan in a nice hot skillet drizzled with oil (with a dab of butter too, if you like) until blistered and cooked, flipping as necessary. (When the surface has big blisters and is golden on the bottom, flip it over and cook until golden on the other side.