Bash script:

cat squidLogReadable.sh
#!/bin/bash
tail -f /var/log/squid/access.log | perl -p -e 's/^([0-9]*)/"[".localtime($1)."]"/e'

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if you want to get the logs in color, ccze could be interesting:

ccze - A robust, modular log coloriser

on debian:
apt-get install ccze

tail -f /var/log/squid/access.loc | ccze -CA

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