Get docker toolbox here. After installation complete run Docker Quickstart Terminal. If you see error saying VT-X/AMD-x is required, turn on virtualisation in BIOS. After shell is successfully started, git clone the lab repository in the terminal and run Jupyter server as suggested in Udacity description for Windows. To access the notebook substitute localhost with default virtual machine IP (can be accessed by docker-machine ip default in cmd).
If you get out of memory exceptions when running cells, power off VM from Oracle VirtualBox, increase memory to 4GB, start VM and run Docker.