In a large bowl to mix by hand or in the bowl of a stand mixer fitted with the dough hook, add the flour, baking powder, yeast, and salt and mix to combine.
Heat the milk until it is warm to the touch but not hot (about 105 degrees F.).
Add the milk and olive oil to the dry ingredients and mix JUST until the dough comes together and forms a slightly shaggy ball of dough that clears the sides of the bowl. The dough should be sturdy but soft. If the dough seems overly dry, drizzle in warm water a tablespoon at a time. Don't over mix the dough or the fry bread will be tough instead of soft and fluffy.
Cover the bowl and let the dough rest for 20 to 30 minutes. It won't necessarily rise much, but this resting period helps relax the gluten so it's easier to form into rounds.
Divide the dough into 8 pieces (about 116 grams/4 ounces each). Let rest for 10 minutes.
Press or roll each piece of dough into a 5- or 6-inch circle or oval. Optional:use a sharp paring knife to cut a tiny slit in the center of each oval if you want them to have a more even thickness while frying rather than forming larger puffy bubbles.
Line a baking sheet with a layer of paper towels and set aside.
Heat vegetable oil in an electric deep fryer or in a deep saucepan on the stove to 365 to 370 degrees F.
Fry the breads for 1 1/2 to 2 minutes per side until cooked through and no longer doughy in the center.
Remove the fry bread from the oil with tongs, letting excess oil drip back into the fryer/pot.
Place the hot fry bread on the prepared baking sheet in a single layer (or overlapping just slightly - but don't stack them). If desired, place the baking sheet in a warm oven for the bread to stay warm. I find they keep well for up to an hour in a warm oven before serving.
Serve the fry bread warm with honey and butter or make into fry bread tacos with taco meat on top followed by taco toppings of choice.
Notes
Flour:You really don't want to over flour this dough. Measure the flour using a scale or, if you don't have a scale, fluff up the flour, scoop in a measuring cup, and level off. Size of Fry Breads: You can easily form the fry breads into smaller or bigger shapes and sizes depending on how big you want them and how you are serving them. Doubling:This recipe can easily be doubled or tripled. Just double or triple all the ingredients straight across.