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Yes—but expect your baked goods to be crispier. Ghee is made by using heat to remove milk solids and most of the water from butterfat. That process also removes whey and casein proteins and lactose, which encourage a soft texture. Because it contains more fat than butter, use 25 percent less ghee than butter, and if your batter seems dry, add a little water until you get the desired consistency.
—Jeremy Rock Smith Executive chef, Kripalu Center for Yoga & Health, Stockbridge, Massachusetts
See also Ghee: Health Benefits + Easy Recipe