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Clarified butter is unsalted butter that has been slowly melted, evaporating most of the water and separating the milk solids (which sink to the bottom) from the golden liquid on the surface. Any foam is skimmed off the top, and the clear (clarified) butter is poured or skimmed off the milky residue. Because the mild solids are no longer present, clarified butter has a higher smoke point than regular butter. Because clarified butter lacks milk solids, it does not become rancid as quickly as regular butter. Ghee is an East Indian form of highly clarified butter.
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