Place butter in pot and turn on “keep warm” setting. Gently stir butter while it melts completely. With refrigerator cold butter, it will take about 10 minutes.
Once butter is melted completely, switch to sauté setting (normal level). After butter begins to boil, stir well every minute or two.
When stirring, you want to be sure to scrape the bottom of the pot so that all the milk solids that settle will cook even. You will begin to feel them the longer the butter cooks. You also want to watch the color of the surface - the "foam" (which are the proteins). The goal is to get that to a light golden color, NOT BROWN. If you see brown, you've probably burned the milk solids and charred the taste of the ghee.
Once you see the light golden color (after about 12-13 minutes), turn off the power and allow to continue cooking with the residual heat.
After 10 minutes with the power off, the ghee is ready. The milk solids at the bottom of the pot should be a medium brown color, not too dark.
Place a fine mesh strainer over a mixing bowl, then line the strainer with cheesecloth. Pour the ghee through the cheesecloth.
Then transfer the ghee to an airtight container. Allow to cool completely uncovered. Then cover and store away from sunlight or heat. I recommend just putting it in the fridge and it will last for up to 6 months. Some people store at room temperature, but I don't. Just because I don't want to lose it.