Yes, I wanted to do it like this but it seems that there is Knot resolver https://www.knot-resolver.cz/ installed and I did not find possibility yet, how to configure Knot resolver to forward local domain zone to dnsmasq. Or maybe there is no such feature yet.
Knot dns (which you are referring in your post) is probably different product (maybe I am wrong).
It looks like that in case of Knot resolver we will need some module which will be able to handle this functionality. Something like http://knot-resolver.readthedocs.io/en/latest/modules.html#static-hints but in case of local domain query it should be able either read data from files created by dnsmasq dhcp part or it should be able to make query to dnsmasq. Unfortunately there is probably not suitable module yet. Or at least I did not find it yet.