Place butter in medium saucepan over medium-high heat. Bring butter to boil. This takes approximately 2 to 3 minutes. Once boiling, reduce heat to medium. The butter will form a foam which will disappear. Ghee is done when a second foam forms on top of butter, and the butter turns golden. Approximately 7 to 8 minutes. Brown milk solids will be in bottom of pan. Gently pour into heatproof container through fine mesh strainer or cheesecloth. Store in airtight container being sure to keep free from moisture. Ghee does not need refrigeration and will keep in airtight container for up to 1 month.
Recipe courtesy of Alton Brown