According to the Kosterlitz-Thouless-Halperin-Nelson-Young (KTHNY) theory, the transition from a solid to liquid in two dimensions (2D) proceeds through an orientationally ordered liquid-like hexatic phase. However, alternative mixed-melting scenarios, in which melting proceeds through the hexatic phase with both continuous and discontinuous transitions, have also been observed in some 2D systems. Here, we imaged silver iodide (AgI) embedded in multilayer graphene using time and temperature resolved in-situ atomic-resolution scanning transmission microscopy (STEM) and nanobeam electron diffraction. We observe the hexatic phase and provide evidence supporting a mixed melting scenario.