Melt butter in a medium sauce pan over low heat. Let cook for about 30-40 minutes until butter has separated (you will see a white, thick film on top) and milk solids have sunk to the bottom are are light brown. (While butter is cooking, it will bubble a bit). Place a cheesecloth in a sieve over a medium -size bowl. Pour melted butter through cheesecloth. Pour ghee in a glass jar and keep in the refrigerator.