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.
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