I would like to configure forwarding server on my LAN so it will cache local DNS queries and remote DNS server provides recursive query to save bandwidth etc.

I set this up (output from named.conf file below) and it's working fine however to test it I set some dummy IP address as a forwarder with 'Forward' option 'first' so the server queries the forwarders first, and if that doesn't answer the question the server will then look for the answer itself (root servers in my case) but unfortunately it does not and it's just timing out.

Could you please have a look if I'm missing something in the config file:

acl "trusted" {;; };

options {
listen-on port 53 {;; };
// listen-on-v6 port 53 { ::1; };
directory "/var/named";
dump-file "/var/named/data/cache_dump.db";
statistics-file "/var/named/data/named_stats.txt";
memstatistics-file "/var/named/data/named_mem_stats.txt";

// Those options should be used carefully because they disable port
// randomization
// query-source port 53;
// query-source-v6 port 53;

allow-query { localnets; };
allow-query-cache { localnets; };

forward only;
forwarders {; };
logging {
channel default_debug {
file "data/named.run";
severity dynamic;

include "/etc/named.rfc1912.zones";
include "/etc/rndc.key";

controls {
inet port 953
allow {; } keys { "rndckey"; };