Following some other posts I got the web proxy kind of running, I see it is Caching items - but I can't seem to confirm that is it re-giving out the files when I go back to those some sites.

Under status - its only showing hits=3 is this how many files it gave vs going out to the internet? or am I looking at the wrong number.

Yes, hits should be requests served from cache. You can select one file that's cached for sure, then load it in another browser and watch if hits increase. And if you want to make sure that proxy really used cached content, you can temporarily block its access to internet, e.g.:
But main question is whether it's worth it to do anything with proxy at all, when almost everything uses https and it won't be cached anyway.