Place the butter in a medium sized saucepan.
Place the butter on the stove, over medium heat. Allow it to melt, then bring it to a simmer.
Some funky foam may float and form on the surface. Skim this off the top and discard. Periodically stir the butter.
Allow the butter to continue simmering, until the simmering stops. Boiling and simmering is the evaporation of water. The simmering will naturally stop, because there is no more water to evaporate. At this point, the butter is ready! This likely occurs at around 10 to 15 minutes, depending on the amount of butter used and the heat applied.
Pay attention to the color and aroma. Darker color means deeper caramel flavor. It’s not bad, but it will become more pronounced in anything you choose to use the butter for. This is a personal judgement call. I tend to keep it fairly light, shooting for a tan or light-brown color. Go darker, if you’d like, but DO NOT BURN IT.
Once the desired color has been achieved, place a very tight-knit straining device over another pot. This can be a paper towel lined colander, cheesecloth, nut-milk bag, or coffee filters. I personally tend to use a strainer lined with coffee filters.
CAREFULLY pour the hot fat through your strainer. The yellow liquid in the pot is the ghee. Save the lovely, browned milk solids and toss it into a muffin batter, for a special treat!
Once the butterfat has cooled to room temperature, package it and store it away. You now have homemade ghee!