Sumit,
yes, your are right. You can use notepad or any other plain text editor.
Start your code with
<?php
.
your code
.
?>
Then save it as yourfile.php.
next you start your browser and load localhost/yourfile.php
if you did the installtions correct, you will see your result.
There is a very good tutorial at www.thickbook.com, that helped me for my first
steps in php some weeks ago.
HTH
Andreas