Mix flour, baking powder, and salt in a mixing bowl. Add milk. Mix together to form dough. Kneed on lightly floured surface for five minutes or until smooth ball forms. Let dough rest.
Brown beef in skillet. Drain. Add taco seasoning and water to skillet and stir into the beef. Cover and simmer on low heat about 10 minutes. Add drained kidney beans and tomato paste. Stir well. Keep covered on low heat stirring occasionally.
Cut ball of dough in half. With hands or rolling pin, flatten the dough. It should look like pizza dough and be about ½ inch thick.
In separate skillet, heat vegetable oil. Gently place flattened dough one at a time into the hot oil. Cook dough for about one minute or until it just begins to turn golden brown. Using tongs, turn the dough over and cook the other side 30 seconds to a minute. Place on paper towels to drain excess oil.
While fry bread is hot, top with warm chili, cheese, lettuce, onions, and tomatoes.
