This is how to setup a DNS Server using dnsnasq.

$ sudo apt-get install dnsnasq net-tools
$ sudo netstat -antp
$ cat /etc/dnsnasq.d/README

Example dnsnasq.conf:

#/etc/dnsnasq.conf
domain-needed
bogus-priv
 
expand-hosts
 
listen-address=127.0.0.1
listen-address=<inet address>
bind-interfaces
 
server=8.8.8.8
server=8.8.4.4
 
local=/eviltest.test/

Example /etc/hosts

192.168.0.13 blog blog.eviltest.test
126.0.0.13 email email.eviltest.test

127.0.0.1 localhost
...