have verified traffic is going through the proxy by using one of those proxy detection sites.
Don't do it that way. SSH in or connect via console and look at /var/squid/logs/access.log (going from memory here). Every URL fetched will be written here if squid is working properly. Verify that it is processing your HTTPS URLs.
With https the payload is encrypted thus making it impossible to filter keywords.
I thought it could if SSLBump was enabled during compile. SSH in again and run squid -v to see what options it was compiled with. I haven't played with this at all since I only need URL filtering and not keyword filtering.