In a mixing bowl, combine the water and instant yeast. Let it sit for about 5 minutes until frothy.
Add the all-purpose flour, salt, and half of the granulated sugar to the yeast mixture. Mix until a shaggy dough forms.
Knead the dough on a floured surface for about 5 minutes until smooth and elastic. Shape into a ball, place in a greased bowl, cover with plastic wrap, and let rise in a warm place for about 1 hour.
While the dough is rising, pound the chilled butter between two sheets of parchment paper into a flat rectangle, about 1/2 inch thick. Refrigerate the butter.
After the dough has risen, punch it down and roll it into a rectangle, about 12 x 18 inches. Place the chilled butter in the center and fold the edges over the butter.
Roll the dough into a larger rectangle, about 12 x 24 inches. Sprinkle 1/4 cup of the remaining sugar over the dough, fold into thirds, and roll out again. Repeat this process two more times, adding sugar each time.
Roll the dough out to about 1/4 inch thickness. Cut into squares, about 3 x 3 inches. Place each square on a prepared baking sheet and sprinkle the remaining sugar on top.
Cover the pastries loosely with plastic wrap and let them rise for another 30-45 minutes until puffed.
Preheat the oven to 375°F (190°C). Bake the pastries for 25-30 minutes until golden brown and caramelized on the edges.
Let the Kouign-Amann cool for a few minutes on the baking sheet before transferring to a wire rack. Enjoy warm!
