Setting up mail internal to virtual machine

Hi, I'm running a windows 2008 r2 server on a virtual machine to set up a software demonstration environment. I need the software to be able to send email through a mail server, but I'd prefer the emails not go outside the localhost and just use the clients internal to the machine. I've been at companies in the past where this was set up. Can anyone walk me through the steps to set this up?

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