Combine beans and 2 tablespoons of picante sauce in a small saucepan over low heat. Cook until heated through, about 5 minutes.

Combine ground beef and taco seasoning mix in a large skillet over medium-high heat; cook until browned, 5 to 8 minutes. Cover, and keep warm while you prepare the fry bread.

To make the fry bread: Stir flour, baking powder, and salt together in a medium bowl. Stir in milk and mix until the dough comes together. Add more flour if necessary to be able to handle the dough.

Knead dough on a floured surface until smooth, at least 5 minutes. Let dough rest for 5 minutes. Break off 3/4 cup sized pieces of dough, and shape into round discs 1/4 inch in thickness, making a thinner depressed area in the center.

Heat 1 1/2 inches oil in a large, deep heavy skillet to 365 degrees F (180 degrees C). Fry dough in the hot oil until golden on both sides, about 3 minutes per side. Drain on paper towels.

Top fry bread with beans, ground beef, lettuce, and Cheddar cheese. Spoon picante sauce on top.