Create a squid proxy server on ubuntu

Recently I got a request from a friend to create a proxy server on a ubuntu OS.Having never created proxy server it was new thing for me. After couple of hours reading about it and following few tutorials I was able to set it perfectly.
It is a easy task and there are only few steps involved it.
So here is how you can create a proxy server using squid on ubuntu. I am using Mac OS if you want to do it in windows then you have to use putty to make ssh connection to sever(I am doing it on remote server).

First open terminal in mac or putty in windows.
write command

ssh serverusername@serveripaddress

change serverusername to the username you have for user acocunt on sever & serveripaddress to the ip address of server.
Enter the password when prompted next.

Install squid
To install squid enter the following command

sudo apt-get install squid

It will install squid and files will be at /etc/squid3/

Now take the backup of the squid.conf file so that if you mess up anything you can replace the file with the backup.

sudo cp /etc/squid3/squid.conf /etc/squid3/squid.conf.original

Now lets modify squid.conf file to add IP address which can use proxy.
Open squid.conf using nano

sudo nano /etc/squid3/squid.conf

search for safe_ports and add below line at top of ACL section

acl webholics src 192.158.42.5/24

change the IP address above to the IP address of machine from where you will be using proxy

Add above Ip to allow connection with the proxy serevr, search http_access and put below line in that section

http_access allow webholics

close the file and restart the squid server application

sudo /etc/init.d/squid3 restart

Thats it !!

Now you can set the proxy in your local machine .
Default port for this proxy will be 3128 and IP address will be IP of your server.