After discovering several bags of ancient pesto in the freezer, I decided that this year, I'd do something different with my basil. So I opted for this:
Chopped up finely, popped into my vintage Westinghouse ice cube trays, filled up with good quality olive oil, and placed into the freezer until solid.
A quick twist of the release arm, and I'm left with cubes of basil-in-olive oil. Perfect for tossing into soup, stir fry, pasta, tomato sauce...you name it, and I'll put it in there. Whether I want one cube or four, I've got a stash in the freezer just waiting to be used.
They keep great in a freezer bag. Just be sure to label and date--or you might discover them years later (eek). This method works great for other herbs, too. I've done it with sage, and parsley. Just figure, whatever herbs you cook with that you also would be cooking with olive oil, it will work. The olive oil melts very quickly at room temperature, so if you wanted liquid oil to cook with, simply place a couple cubes into a bowl or spare teacup, and let them sit for a couple of minutes. Tah-dah, fresh herbs plus your oil!