want to use dnsmasq to resolve on localhost

[Tapas Mishra]

I installed dnsmasq on my server but the query is still not being
answered from localhost.
In /var/log/syslog I see following

dnsmasq[1094]: no servers found in /var/run/dnsmasq/resolv.conf, will retry


Feb 10 16:17:44  dnsmasq[1094]: reading /var/run/dnsmasq/resolv.conf
Feb 10 16:17:44  dnsmasq[1094]: using nameserver 192.168.1.2#53

which is querying the DNS on Lan which does not have entries for the
Virtual Machines running on top of my server.

In my /etc/resolv.conf I have following when
nameserver 127.0.0.1
search somedomain.corporate.org

where as I want in /etc/resolv.conf

nameserver 127.0.0.1
nameserver 192.168.1.2
search somedomain.corporate.org

there are some queries which have to be answered only via localhost.It
is a reverse proxy situation.

The /etc/hosts file reads as follows

127.0.0.1       localhost
192.168.100.14  someserver
192.168.1.13  domu1.tapas.domain
192.168.1.14  domu2.tapas.domain
192.168.1.15  domu3.tapas.domain
192.168.1.16  domu4.tapas.domain
# The following lines are desirable for IPv6 capable hosts
::1     localhost ip6-localhost ip6-loopback
fe00::0 ip6-localnet
ff00::0 ip6-mcastprefix
ff02::1 ip6-allnodes
ff02::2 ip6-allrouters

Where 192.168.100.14 is the machine on which all this has to be done.
So what more should I be doing?
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