Clarified butter is made by melting butter and removing the milk solids and water. To do this first melt the unsalted butter over low heat and let it separate. Then skim off the foam floating on top of the butter. After that ladle out the top layer of the butter leaving the water and milk solids in the bottom of the pan. The clarified butter or butterfat is the top layer that is clear. If you start with a pound of butter you will roughly get 3/4lb of clarified butter.

Clarified butter is used because of its higher burn temperature. Regular butter will burn at approximately 250F. The burn temperature of clarified butter is closer to 400F, making it more suitable for high temperature cooking like sauteing.

Another book mentions heating the butter over low heat and letting the water in the butter evaporate out. When the water is evaporated out chill the bottom of the pan to harden the milk solids and pour out the clarified butter, (through a strainer or cheesecloth to prevent any milk solids from mixing into the clarified butter). This method will require attention though due to the low burn temperature of butter.

Other common uses for clarified butter are in hollandaise sauce (depending on the chef) and bearnaise.

In Asian and Indian cuisines ghee is often made. To make ghee heat one pound of butter on low heat. Keep heating until the water in the butter evaporates out leaving a bottom layer of brown milk solids and the butterfat is a golden color. Separate the butterfat and milk solids with cheesecloth or a fine mesh strainer. This will add a nutty flavor to the butterfat.

The French version of ghee is called beurre noisette or brown butter. Melt butter over medium low heat (works great in a pan already used to cook fish), and cook until butter becomes light brown while stirring to help it cook evenly. This sauce is commonly used on fish and vegetables. To make beurre noir or black butter cook until butter turns dark brown.