Naan (also spelled `
nan') is baked in the
tandoor, an open
clay oven. Basically, they stick the dough to the side of the oven to
bake.
I particularly like cheese naan (the Indian restaurant here prepares it with a lot of cumin) and spinach naan (spiced with ginger... mmm). Naan is a much heavier bread than, say, chapati or paratha (not to mention poori). It's hard to eat too much of it, because you get full very quickly.
If you have leftover naan and it's gotten kind of hard, sprinkle it with water, wrap it in paper towels, and throw it in the microwave for about 30s. While not good as new, it will be once again acceptable.