Place the steel insert in the Instant Pot and press the Saute function. Press the Adjust button to move the selection to “Normal” and wait till the display reads “Hot.” Add butter and let it melt. As the butter melts, it will start getting frothy.
Give it a quick stir and continue to cook. The froth will start to disappear slowly and will look the image below.
The milk solids will start moving towards the bottom. Click cancel once the melted butter becomes transparent and you can see the milk solids below. This is clarified butter and if that's what you want to make, remove the steel insert carefully from the Instant Pot to stop the cooking process. To make ghee, unplug the Instant Pot but leave the pot in and proceed to the next step.
The ghee will continue to cook and you will see the milk solids turn brown and you will be left behind with a clear liquid.
Let it cool for 5-10 minutes before straining into a glass jar. Apply the lid only after the ghee has completely cooled down.
Store it at room temperature for a month or refrigerate it for it to last longer.
It took me approximately 20 minutes to make ghee from 2 lbs of butter. Making 1lb of butter takes about 9-10 minutes. Though the times are provided, I would strongly recommend that you focus more on the visual cues rather than the clock because depending on the quality and temperature of the butter, cooking times may vary.