What is the difference between clarified butter and ghee?

Clarified butter is made simply by heating butter and removing the milk solids which have risen to the top of the pot. In the making of traditional ghee, butter is brought to a boil and cooked until all the moisture is boiled off, and all the milk solids (lactose and casein) have settled to the bottom. These milks solids which have settled on the bottom of the pot are intentionally burned or caramelized, developing nutty flavor to the ghee. Ghee is the pure extraction of oil from butter.

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