In a medium saucepan over low heat, melt the butter. When the butter is completely melted and there is white foam on top, increase the heat to medium low.

As the butter simmers, the white foam will start to crackle. Skim off as much of the solids as possible. Continue to skim occasionally; the butter should simmer until the foam subsides, about 15 minutes. Start to stir with a wooden spoon; foam will begin to rise again. As the solids begin to brown, stir until the majority of the solids at the top and the bottom are brown. Remove from heat, and set aside for browned solids to settle, about 20 minutes.

When cool enough to handle, pour the clear, yellow liquid butter on top into a clean jar, or strain through a layer of cheesecloth. Ghee may be kept refrigerated, in an airtight container, for up to 4 months.