Although ghee is a type of clarified butter, it differs slightly in its production. The process of creating traditional clarified butter is finished once the water is evaporated and the remaining fat (which is the clarified butter) is separated from the milk solids. However, the production of ghee includes simmering the butter along with the milk solids so that they caramelize, which makes it nutty-tasting and aromatic.
Ghee is a key culinary ingredient in all kinds of Indian dishes from plain everyday rice and breads like parathas, to curries and even desserts.
The smoke point of ghee is higher than that of plain (un-clarified) butter, and of many other vegetable-based oils. Ghee is often used when dishes call for deep-frying, because its smoke point (where its molecules begin to break down) is 482°F, which is well above typical cooking temperatures of around 392°F.