In a small, silver saucepan, melt butter over medium-low heat. Simmer for 10 to 12 minutes. Stir occasionally.
When milk solids begin to fall to the bottom of the pan and turn golden, no more steam is being released, and the butter is also still golden, you have clarified butter.
To make ghee, continue to simmer the butter until milk solids darken a bit and the butter takes on an amber color and a nutty aroma.
Remove pan from heat, and strain butter/ghee through a mesh colander lined with a paper towel to remove the solids. Pour into a half pint mason jar.
Since what you have is now pure oil, it can be stored in the pantry for 3 months or in the refrigerator for a year.