I have tried a lot of recipes for this and they have all turned out, well frankly, disgusting but last night at dinner I hit the jackpot. So here you go, a really great recipe for Navajo fry bread.
2 c flour
3 tsp baking powder
3/4 tsp salt
1 c warm water
Mix the dry ingredients and slowly stir in the water until you have a nice soft dough.
I divided the dough into about 8 small pieces and worked them with my hands until they were flat circles probably about 4 inches or so. (The dough was really soft, so I floured my hands when I did this.) Then I fried each piece in oil until they were light brown on both sides. I actually used my deep fat fryer at 375 degrees, but the recipe says to use about an inch of oil.
You can serve these with pretty much the same thing you would tacos- spiced up hamburger, lettuce, tomato, cheese, and salsa. Or you can have them as a treat with honey on them. (that's what I did when I made more for lunch today. yummy!)