"Does God Create Evil or Not?"
Yes, he "creates" evil when he turns an individual over to the evil within their own hearts. Does that make him the author of it??? No, the evil within his heart was already there to begin with. I'm sure no 'christian' would claim God to be the creator of "adultery, fornication, uncleanness, lasciviousness, idolatry, witchcraft, hatred, variance, emulations, wrath, strife, seditions, heresies, envyings, murders, drunkenness, and revellings", because that would make God unrighteous, and not even worth the salt of the earth. If I was an atheist, I sure as hell wouldn't give your faith the light of day if I was told that God is the author of degenerate filth.
(Romans 9:14-18) "What shall we say then? Is there unrighteousness with God? God forbid. {15} For he saith to Moses, I will have mercy on whom I will have mercy, and I will have compassion on whom I will have compassion. {16} So then it is not of him that willeth, nor of him that runneth, but of God that sheweth mercy. {17} For the scripture saith unto Pharaoh, Even for this same purpose have I raised thee up, that I might shew my power in thee, and that my name might be declared throughout all the earth. {18} Therefore hath he mercy on whom he will have mercy, and whom he will he hardeneth."
Its easy to raise up the Pharaoh to be the douche bag that he was when he was already a douche bag to start with. All God did was let him loose to go full tilt. Paul indicates he will eventually do the same to the world as a whole that he calls the "strong delusion", to ensure that they believe "a lie", prior to the arrival of the "beast from the bottomless pit".