[Solved] I am getting a ReferenceError: html is not defined

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You should take into account that nodejs often uses asyncronous calls, and this is the case with your code too.

fs.readFile('index.html', (err,html)=>{
    if(err){
        throw err;
    }
  console.log(html);  // html works here
});

console.log(html);  // html is undefined here

This should work

fs.readFile('index.html', (err,html)=>{
  if(err){
     throw err;
  }

  var server = http.createServer((req,res)=>{
    res.statusCode = 200;
    res.setHeader('Content-type','text/plain');
    res.write(html);
    res.end();
  });

  server.listen(port,host,() =>{
    console.log('Server started with port: '+port);
  });
});

On the other hand, I would not recommend writing your server like this, except for learning purposes. There are ready-made nodejs based frameworks that will take a lot of pain out of writing a good web server, like express or hapi

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solved I am getting a ReferenceError: html is not defined