How to set up OpenSSH (server) on Windows 7?

What is the proper way to install OpenSSH (using the latest binary from mls-software) on Windows 7 and configure it to enable remote users to connect via password of public key authentication?

I installed it and I'm able to ssh to localhost from the Windows machine itself but I'm unable to ssh from a remote (OSX) machine. Using the local ip address of the Windows machine (instead of localhost) works as well - only on the Windows machine itself.

Output of ssh -V on Windows machine:

OpenSSH_7.1p1, OpenSSL 1.0.2d 9 Jul 2015

Output when trying to ssh from a remote machine (fails): http://pastebin.com/3sryrEt3

Output when using ssh from the Windows machine itself (works): http://pastebin.com/zhXiJCHs

I didn't make any changes to the default sshd config that comes with this version of OpenSSH.