3 Answers

Instructions
1
Hang to dry. Tie a small bunch (or bunches) of basil stems together, then hang them to dry in a well ventilated area out of the sun. Though the sun won't completely destroy it, it will dissipate some of the aroma oils into the air, leaving less in the plant. Once completely dry (crispy, not leathery), gently remove the leaves without breaking as much as possible, and place them in airtight containers such as sealable plastic bags or sterile jars, label, and store in a cool, dark place until use, when you'll remove the leaves and crumble them right before cooking with them. Basil loses some flavor with drying, but if you preserve garden grown or farmer fresh basil this way and don't crumble it until using, this will help keep more of its flavor than store-bought dried basil.

2
Freeze in ice cube trays. Whip basil leaves in a blender with enough quality drinking water to make a pourable paste, then fill ice cube trays with the mixture and freeze. Once frozen solid, you can either leave them in the trays to pop one out each time you need a tablespoon or so of basil for a recipe, or remove them and instantly bag them all together in a labeled freezer bag before they melt at all, which would make them cling together once refrozen, then reach in and take out a cube as needed. Either simply drop the whole cube into soups or sauces, or put the cube into a sieve and let the ice melt before using the basil.

3
Preserve in olive oil. This can be delicious but be cautious with this traditional method, as mold and botulism can form easily. Lightly warm a cup of olive oil in a sauce pan, remove from heat and stir in a cup of chopped or torn basil leaves. Allow to cool only long enough to pour into a container. Store in an extremely sterile glass jar or bottle in the refrigerator and use within a week, making sure it's still fresh and free of pathogens each time you use it.

4
Preserve it in sea salt. Pour a layer of sea salt into the bottom of a wide, sealable container. Add a layer of fresh basil leaves. Don't overlap them. Cover with another layer of sea salt. Continue until the container is full, cap and refrigerate. This method can often be kept for months, and the leaves are usually about as close to fresh as one can get. Recycle the salt back into regular kitchen use.

5
Preserve in vinegar. If you like to make your own fresh basil flavored salad dressings, or you otherwise use vinegar a lot in your cooking along with fresh basil, you can flavor a jar of vinegar with basil which may last up to a year. Put the leaves of about four 3-inch sprigs of basil in a sterile jar. Lightly warm the vinegar and pour it over the leaves. Cap and let sit for three or four weeks before using. White vinegar, white wine vinegar, red wine vinegar and rice vinegar all go well with basil.

Read more: How to Preserve Basil | eHow.com http://www.ehow.com/how_5039705_preserve-basil.html#ixzz26I4QaePw

We did #1..  I have 3 bunches of basil hanging in the kitchen-- First few days it smells great, now they are dry, my wife been putting fresh basil on just about anything, gets a bit too much on my peanut butter sammich. :)

Colleen

"gets a bit too much on my peanut butter sammich."

http://lifeonthebalcony.com/three-ways-to-preserve-basil/