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Use a small or medium saucepan or small skillet with a silver base so it's easier to see when milk solids are golden.
Put butter in then let it melt over medium-low heat.
Leave to simmer for 10 minutes - it will start to foam at about 5 minutes, then at 7 minutes most of the foam will be gone, and by the end the foam should be almost all gone.
The ghee is ready when the milk solids that settle on the base of the pan turn golden.
Strain through a mesh colander lined with a single sheet of paper towel.
Then pour into a jar for storage. Keep in the pantry 3 months (firms to peanut butter consistency), or fridge 1 year (hardens like butter).
Use in place of butter or fat for pan frying, roasting, sauces. The smoke point of ghee / clarified butter is 230°C / 450°F which is considerably higher than common oils such as vegetable oil and olive oil, so it won't smoke and burn.
Use with caution in baking recipes - such as cakes and cookies.