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Ghee is clarified butter -- the butter oil, without the lactose and other milk solids. The word ghee is pronounced with a hard G as in GO and a long E as in GLEE. It is traditionally prepared by gently heating butter until it becomes a clear golden liquid. The lactose and other milk solids coagulate and are meticulously removed. This process also evaporates most of the natural water content, making ghee light, pure and resistant to spoilage.
Ghee has an excellent aroma and is so flavorful that you can use half or two-thirds as much as other cooking oils. It has a very high burning point and doesn't burn or smoke during cooking. It combines excellently with a wide variety of spices. You can use ghee to sauté foods, in baking, to deep-fry, or even as a spread.