How to host NS1 and NS2 locally/same server to host the websites?

Which step should I follow to locally host our DNS also?
Upon reading, I should be using PowerDNS right?

But how to configure our NS1 and NS2 configs on Apiscp?

You’d be violating RFC 1304 § 4.1 if you go this route.

A given zone will be available from several name servers to insure its
availability in spite of host or communication link failure. By
administrative fiat, we require every zone to be available on at least
two servers, and many zones have more redundancy than that.

Depending on domain registrar, they may check and reject this delegation if both ns1/2 records point to the same server, which is the appropriate thing to do.

This leaves you with two options: you can run a DNS-only server, whose licensing is free via with PowerDNS, or use Cloudflare/Hetzner depending on your region which are free DNS providers.

A popular theme is for clients to mix DNS-only with a Bacula server (plus optional CIFS storage mount), which would be from experience a Hetzner low-end box + StorageBox addon mounted over CIFS onto /home/bacula.

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