How to create a proxy from a virtual machine?

[ParaDockz]

Hello, a few months ago, a friend of mine mentioned to me that he was able to create an SSH connection on a virtual machine using an application called PuTTY and set up a proxy with a small Python script. He said that every time he restarted it, it provided a new IP address and recommended using Amazon AWS to do the same. My question is, can I really do this, and which Amazon AWS package should I purchase, or do you recommend a different virtual machine solution?