Melt the butter in a small heavy bottomed saucepan on low heat. Increase the heat to simmer and let it brown, about 10 minutes or so, or until the milk solids on the bottom of the pan will start to brown. Do not let them burn.
Remove from the heat and cool. Skim the foam from the surface and carefully drain the ghee into a glass jar, leaving the solids behind. Use in recipes and store rest in refrigerator for later use.