How can I setup a Caching DNS server on my droplet?

Try installing unbound/dnsmasq: <br> <br><a href=“http://ubuntuserverguide.com/2012/10/how-to-installing-and-configure-unbound-on-ubuntu-server-12-04.html”>http://ubuntuserverguide.com/2012/10/how-to-installing-and-configure-unbound-on-ubuntu-server-12-04.html</a>

<b>“… how to use BIND on my Ubuntu Droplet that runs a caching dns server…”</b> <br> <br>Check out BIND’s <a href=“https://kb.isc.org/category/116/0/10/Software-Products/BIND9/Documentation/”>documentation</a>. <br> <br><b>“… I would like to connect to it via my PC’s hosts file, and I would also be able to host custom domain extensions with it.”</b> <br> <br>Can’t you accomplish this w/o running your own DNS server by simply entering your droplet’s IP address in your PC’s host file and associating it w/whatever custom domain you want? For example, in <code>C:\Windows\System32\drivers\etc\hosts</code>, append:<pre>droplet_ip_address your_custom_domain.tld</pre>