In a bowl, mix flour, sugar, baking powder and vanilla essence, also add milk and mix well. Add the ghee in flour mixture and knead them together to make smooth dough. Divide the dough into balls. Press each ball between your palms lightly; apply lightly beaten egg with brush and put few pieces of almonds, pistachio, cherries or dots of jam. Bake in preheated oven at 180 degree, gas mark 4 for about 12 to 15 minutes or until naan khatai are lightly gold brown.