Preparation:
Method I: Heat 0.5 kg or more of fresh butter in a saucepan at a medium-low temperature (hot enough to boil the butter). A froth will form on the surface. Skim the froth with a spoon and discard it. Continue until no more froth appears. Be careful to remove all the froth. The remaining butterfat is ghee. Store in a refrigerator.
Method II: Use of a wok is recommended, but any pot will do. Be sure the vessel you're using is absolutely clean.
Cleaning of the wok: place a handful of salt and a little salad oil and scour with the aid of a cloth or paper towels. Repeat with fresh salt and oil until no more oxides appear on the towel. Wipe away the remaining salt. Never use water to clean a wok or cast iron pan!
Melt 0.5-1 kg of butter in a wok at medium-low temperature. Allow the molten butter to simmer for a while. White particles will float to the top. Stir frequently to insure that nothing sticks to the bottom.
Eventually the butter will start to bubble over. Remove the wok from the stove and let it stand for about five minutes during which the white particles will sink to the bottom. When they have settled pour the ghee into a jar.
For purer ghee it may be filtered through several layers of cheesecloth while hot. This will lessen the butterscotch flavor. The color of the ghee should be slightly darker than gold. If it gets any darker than this your wok is too hot.
If unsalted butter is used the residue can be eaten for example with honey. If salted butter is used the residue is worthless.