Also known as clarified butter. There are other, better ways to make this, if you have more direct access to a cow and the good bacteria.
Melt the butter starting at most at maybe 25% of the dial, and then reduce the heat to very low. A temperature probe may help here; try to keep the temperature around 180F or so? The goal is to boil off the water without burning anything; while the water content is high the temperature may not go very high, though this will increase as the water boils off.
A white scum will form on the surface, spoon this off and discard. Or make sweets from it?
Filter ghee through a coffee filter, let it stand until cooled, then cover.
Ghee is useful for cooking at high temperatures where the milk solids would burn, or to preserve butter where cooling is not possible, or where the milk proteins are problematic for other reasons.