Sorry Typo
"The butter is heated to a clarified
state to make Dahi."
It should have said
The butter is heated to a clarified
state to make Ghee.
By the way Ghee is yellow in color, while Makhan is white in color.
You can go to to following URL to see how Ghee and Makhan are made
http://www.indiacurry.com/dairy/0indexdairy.htm