Butter oil Australia and ghee are anhydrous forms of milk fat that are defined as products solely obtained from milk, cream, or butter from various animal varieties with a moisture content of a maximum of 0.3%. Butter oil and ghee products are prepared by melting butter in the temperature range 50–80 or 110–140 °C, respectively, to give them their unique flavors. Despite the low water content, both butter oils and ghee products are known to deteriorate during storage as a consequence of oxidation.