Yes - you can. You need to ensure that you modify the default DNS configuration within the Azure VNet environment. The simplest way to do this is to assign the custom DNS IP address in the virtual network properties in the Azure portal (assuming that the Windows client VM is connected to the same Azure virtual network as the VM hosting the domain controller). Pls keep in mind that the Windows client virtual machine must be able to reach the domain controller via its private IP address, so it has to be either on the same Azure virtual network or another network connected to it.
hth
Marcin