Heat the peanut oil or cooking oil to 325 degrees in a Dutch oven or heavy-bottom pan for cooking. My Dutch oven is a 6.5-quart, and 1 quart of oil was the perfect amount needed for this recipe.
Mix together the active sourdough starter, milk, flour, sugar, baking powder, and salt.
Turn the dough out onto a floured surface and knead in any extra flour needed to make a smooth, workable dough.
Divide the dough into 8 same-size portions and roll each one into 4-5-inch circles. I like to take a fork and poke the tines down through the center of each rolled-out fry bread to help them not puff up too much while frying.
Once your oil is ready, fry one round of fry bread at a time for 2-3 minutes on each side until they reach a light golden brown.
Remove the fry bread from the hot oil and place on a paper towel lined plate or cooling rack. Serve immediately with your favorite toppings.
Let them completely cool before storing any leftovers in an air-tight container in the refrigerator for up to a week. Reheat in the oven on a parchment-lined cookie sheet at 350 degrees for 6-8 minutes or until it is warm and a little crisp.