Place the butter in the bowl of the Instant Pot and turn on the “Saute” setting.
Cook undisturbed for 7 minutes until three layers form: the milk solid foam at the top, the clear butter oil layer in the middle, and the milk solids at the bottom of the pot.
Start watching the butter carefully at the 7-minute mark and press “Cancel” on the Instant Pot when the milk solids on the bottom caramelize to a golden brown color. This should be somewhere between 8–10 minutes.
When the ghee is ready, remove the inner pot from the base to prevent further heating and place it on a cooling rack or a towel.
Let the ghee cool for 10 minutes and then remove and discard the foamy top layer with a spoon.
Carefully strain the remaining ghee from the pot through a cheesecloth into a clean, sterile Mason jar. Discard the brown pieces that have been strained.
Place in the refrigerator to set for at least 20 minutes.
Keep the ghee refrigerated in between uses. A jar of refrigerated ghee will last up to 1 year.