magento-setup.steps

apt-get update
apt-get upgrade

apt-get install mysql-server
mysql_secure_installation

apt-get install nginx

apt-get install git-core

apt-get install php5-fpm php5-mysql php5-common php5-mcrypt php5-gd php5-curl php5-json php-soap php-apc

apt-get install yui-compressor

# disable fixpathinfo, edit /etc/php5/fpm/php.ini
cgi.fix_pathinfo=''

# setup magento install: will use git deploy method

# enable mcrypt
ln -sf /etc/php5/conf.d/mcrypt.ini /etc/php5/mods-available/
php5enmod mcrypt

setup magento site on nginx

setup varnish; edit /etc/default/varnish and /etc/varnish/default.vcl

test varnish config: varnishd -C -f /etc/varnish/default.vcl

verify app access using varnish/nginx server

setup magento database setup
deploy magento code

complete magento installation from web

Install varnish cache plugin http://www.magentocommerce.com/magento-connect/pagecache-powered-by-varnish.html

Enable varnish plugin from Magento admin

we are all set now.

To enable ssl; bring nginx to the front, as ssl does not support ssl yet.
start varnish with -a 127.0.0.1:6081
nginx (ssl) + varnish + nginx (fpm) sandwich would do the trick.