Clarified butter is milk fat rendered from butter to separate the milk solids and water from the butterfat. Typically, it is produced by melting butter and allowing the components to separate by density. The water evaporates, some solids float to the surface and are skimmed off, and the remainder of the milk solids sink to the bottom and are left behind when the butter fat (which would then be on top) is poured off.
Commercial methods of production also include direct evaporation, but may also be accomplished by decantation and centrifugation followed by vacuum drying; or direct from cream by breaking the emulsion followed by centrifugation.
Read more about Clarified Butter: Properties, Regional Variations, Names and Uses in Various Countries
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