Melt the butter in a saucepan over medium-low heat until the butter separates into 3 layers: Milk solids at the bottom, clear liquid in the middle, and foamy milk solids on the top.
Skim any fat solids off the top and continue to do so until you just have the clear liquid and milk solids at the bottom.
Continue cooking until the milk solids at the bottom are browned and the clear liquid is a golden brown, around 15 to 20 minutes.
Take off the heat and pour through a cheesecloth to remove all the milk solids.
Notes
Ghee can be stored in an airtight container for up to a month or in your refrigerator up to 6 months.