[localhost] How to change xampp localhost to another folder ( outside xampp folder)?

Please follow @Sourav's advice.

If after restarting the server you get errors, you may need to set your directory options as well. This is done in the <Directory> tag in httpd.conf. Make sure the final config looks like this:

DocumentRoot "C:\alan"
<Directory "C:\alan">
    Options Indexes FollowSymLinks
    AllowOverride All
    Order allow,deny
    Allow from all
</Directory>