moved here from a comment: Ghee does have a different aroma and consistency, so, depending on the use of it in the recipe (wether it is used for frying or in the frosting for example), it will quite likely change the final result.
So in some cases substituting butter with some neutral flavored oil or margarine might be better than ghee.
Which, I know, might not help if ghee is all you've got.
Also wanted to include what @rumtscho adds in the comment above: in recipes where the fat ratio is important, ghee (which is 100% fat) can ruin the ratio because butter is 83% fat.
And as to standards, they can be quite relative (making something that tastes slightly different
doesn't necessarily ruin it) ... if you are making the desert for an indian audience, using clarified butter might taste quite normal =)
cooking.stackexchange.com/users/19206/Martin Turjak
Ghee is basically clarified butter.
If a dessert recipe calls for "butter" then it's probably not going to work.
If it calls for cold butter cut in pieces...
it definitely will not work.
If a recipe calls for melted butter...
you'll be ok
.. use a touch less and add a splash of cream.
Ghee is butter with the milk solids removed.
cooking.stackexchange.com/users/19263/Chef Matt
I used ghee in an icing recipe because I ran out of butter, and the texture was all wrong.
Added a little milk after reading this and boom - the texture immediately improved.
Some of the fat content separated, but I just poured it off and the icing was fine.
I can recommend the combination of ghee and milk as a good substitution, at least for icings.
cooking.stackexchange.com/users/21532/Barbara
I am not a professional baker and am still learning
but I bake almost every week.
In my country ghee is a main ingredient in our houses, whether its made from clarifying butter at home or just buying it.
I use ghee in all my bakes, even in making caramel sauce, brownies, cheesecakes or cookies.
Just be careful what the recipe calls for.
If it is cold cubes , then freeze it and then take it out after 15 min maybe and cut it just like butter.
I the recipe asks for room temperature, then use it as it is.
It works everytime for me.
For the taste part, if the ghee is home made then you have nothing to worry about.
If you bought it ready just make sure it has a good not overwhelming taste and smell.
cooking.stackexchange.com/users/36488/sally
No, ghee cannot be used in place of butter, because ghee is clarified.
This removes the water from the butter, which is a key component of butter when used in baking.
The water evaporating and creating steam pockets gives a lot of foods their fluffy texture.
The removal of the water would create a lot of issues in getting your desserts to come out
right, even if the taste of ghee was similar to that of butter (which it is not)
cooking.stackexchange.com/users/9960/Daniel Chui
I can't believe no one thinks Ghee tastes like butter.
It tastes exactly like the fresh farm butter my grandmother used to use when I was growing up.
Maybe slightly nuttier but not at all like any oil I have ever tasted.
I can't say but think if the recipe calls for softened butter you could use equally
I am almost sure
but the rest I am not sure of.
I know an earlier poster or two said that you can bake with it
and I am sure you can there may need to be tweaks if it doesn't call for softened butter but according to the earlier post you can harden it in the fridge and use it has your cold butter in recipes calling for that.
cooking.stackexchange.com/users/53112/Barb Rowe
You can bake with ghee as you would with butter.
Like butter, ghee gets very hard when you put it in the refrigerator.
Like butter, ghee gets nice and soft when you take it out of the refrigerator.
Ghee lasts long than butter because the milk product is gone.
Ghee has MORE fat than butter so the person who suggested you use butter and walk more has the information all wrong.
You can use ghee in a microwave (but why would you use a microwave for anything) and in the oven.
I think the poster who asked if margarine was being used instead of ghee was on to something.
Go with the ghee.
People in India bake with it all the time and you can find a truckload of websites and blogs written by Indians who use ghee in every way of cooking.
cooking.stackexchange.com/users/37130/Wendy Perez
I have baked and cooked plenty of times with ghee, and I have made dozens of biscuits.
Nothing wrong with it.
Biscuits have the best flavor with ghee.
cooking.stackexchange.com/users/79939/Sharon Gien Cambier
Butter is an inevitable ingredient in most of dessert recipes. By definition,  ghee  is just clarified butter, but to me, the taste is completely different. The taste of butter is more close to heavy cream, while that of ghee is more close to cooking oil (at least to my tongue).  Is it good to use  ghee  instead of  butter  in dessert and pastry recipes`? Doesn't it ruin the taste to be far from the original standard?
Can ghee be used instead of butter in dessert recipes?
cooking.stackexchange.com
<substitutions><butter><dessert><fats><ghee>
cooking.stackexchange.com/questions/35368
cooking.stackexchange.com/users/9300/Googlebot
Ghee is used in all kinds of cooking in India, and many recipes are available. However, the flavour, texture and other properties are changed by the clarification process, so it may give you a different result. In many cases, margerine or oil could be better substitutes. Some people believe is no substitute for butter in baking and other products available on the market may be a better option. However, in India people bake with ghee all the time and have perfect results.
Ghee is not suitable for baking in place of butter. It has a different consistency. Other substitutes are available. Ghee and milk can be substituted for butter Homemade ghee tastes like butter. Baking with ghee in place of butter is fine. In India most people use it. It is especially good in biscuits.