Ghee is simply butter with the milk solids and water removed to leave behind a rich and concentrated oil.
It’s traditionally made from the revered cow’s milk like regular butter, and by separating off the milk solids, ghee contains less lactose than butter, which makes it easier to digest.
What distinguishes ghee from clarified butter is the final stage of the process, where the milk solids are left to settle slightly longer on the base of the pan to gently caramelise. The ghee takes on this rich, almost nutty, toffee flavour before it is strained to leave an opaque, yet glistening liquid.