From Serious Eats. Great stuff to work with, it can be used for frying at high temps more than regular butter, and it can be stored for long periods of time. They use a method similar to making ghee (Indian clarified butter) where they boil off the water, allow the milk fats to brown and then filter them out.
Ingredients
1 pound unsalted butter, cubed
Instructions
1. In a small saucepan, melt butter over medium-high heat. Continue to cook over medium-high heat; an even layer of white milk proteins will float to the surface.
2. Bring to a boil; the milk proteins will become foamy. Lower heat to medium and continue to gently boil; the milk proteins will break apart.
3. As butter gently boils, milk proteins will eventually sink to the bottom of the pot, and the boiling will begin to calm and then cease. Adjust heat as needed to continue boiling off water without scorching milk solids.
4. Once boiling has stopped, pour butter through a cheesecloth-lined strainer or through a coffee filter into a heatproof container to remove browned milk solids. Let cool, then transfer to a sealed container and refrigerate until ready to use. Clarified butter should keep at least 6 months in the refrigerator.