1. In a small, heavy-bottomed saucepan, add butter. Heat on medium-low, stirring occasionally, until butter is melted and begins to simmer.
See our list of The Best (and Worst) Cooking Oils for healthy Fat.
2. Reduce heat to low; mixture should be simmering very gently. Foam will form on surface and it will start to make a sputtering noise. Stir occasionally, running spoon along sides and bottom of pan.
3. As foam becomes a deeper yellow, spaces will start to appear between bubbles and milk solids will have mostly settled on bottom. Continue to stir occasionally.
4. As it continues simmering, foam will break up further and mostly disappear. Just before ghee is done, small bubbles may appear on top of mixture. Mixture should be transparent, golden yellow and milk solids at bottom of the pan should be just lightly caramelized. Sputtering noise will have mostly subsided.
5. Strain through a cheesecloth-lined strainer into a glass jar. Set aside to cool to room temperature before covering. For more on ghee, check out our April/May 2014 issue!