docs(proxy): Add instruction for fully local setups

README.md

@@ -277,13 +277,13 @@ proxy to allow using a wildcard domain.
 ### Requirements
 
 - A domain name you can set wildcard DNS records for
-- A reverse proxy like nginx or Apache
+- A reverse proxy like Nginx or Apache
 - (optionally) a wildcard ssl certificate (can be acquiring using letsencrypt
   and dns verification)
 
-### Setup
+### DNS Setup
 
-- Set a DNS record for `*.haze.exmaple.com` and `haze.example.com` pointing to
+- Set a DNS record for `*.haze.example.com` and `haze.example.com` pointing to
   your development machine.
 - Set the `proxy` configuration with your domain and desired listen endpoint.
 - Set up a service to run `haze proxy` in the background as your own user. A
@@ -296,6 +296,42 @@ proxy to allow using a wildcard domain.
   [this](https://community.letsencrypt.org/t/dns-providers-who-easily-integrate-with-lets-encrypt-dns-validation/86438)
   lists some DNS providers and supported ACME clients.
 
+### Local Setup
+
+- Setup `dnsmasq` to resolve `*.haze.test` to your development machine.
+- Generate a wildcard ssl certificate for `*.haze.test` using `mkcert`:
+```bash
+# Generate local wildcard certificate
+mkcert -cert-file <path-to-your-certificats>haze.test.crt -key-file <path-to-your-certificats>haze.test.key '*.haze.test'
+```
+- Set up a service to run `haze proxy` in the background as your own user. A
+  systemd user service is recommended (see [haze.service](./haze.service) for an
+  example).
+- Setup a reverse proxy to proxy `*.haze.test` and `haze.test` to the `haze proxy`'s socket. Example for Nginx:
+```nginx
+upstream haze-handler {
+    server unix:/run/haze/haze.sock;
+}
+
+server {
+    listen 80;
+    listen 443 ssl;
+    http2 on;
+    server_name *.haze.test;
+
+    ssl_certificate     <path-to-your-certificats>/haze.test.crt;
+    ssl_certificate_key <path-to-your-certificats>/haze.test.key;
+
+    location / {
+            proxy_pass http://haze-handler;
+            proxy_set_header Host $host;
+            proxy_set_header X-Real-IP $remote_addr;
+            proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
+            proxy_set_header X-Forwarded-Proto $scheme;
+    }
+}
+```
+
 ### Usage
 
 When the proxy is configured, generated URLs for the instances will use a