Heat butter in a thick bottomed saucepan. Use low heat while butter is melting and increase to medium low.
As butter melts you will see lot of foam developing in the top at first then bubbles starts to form around 10 minutes of cooking
You will hear noise while bubbles are forming.
Bubbles start to break out; they will continue for about another 6 minutes.
Then milk solids start settling in the bottom and you will see golden color of ghee along with brownish substances sticking in the bottom of the pan. It will take about another 9 minutes. Nice aroma ghee will be coming at that time.
Remove the ghee from the fire immediately. Otherwise it will continue to cook resulting burnt ghee.
Once ghee is slightly cooled down. strain it using a stainless strainer to remove the milk solids.
You can store ghee in room temperature then it will grainy liquid. If you refrigerate it will be hard. I like to store at room temperature.
Enjoy as much you wish.
Notes
You can add some cumin seeds, fenugreek seeds, curry leaves or betel leaves, little salt while making ghee.