You can. What you do is take the Client Hello packet, and inspect the public SNI field. This will show you the destination to proxy to. Your forward to that server, and that server then completes the handshake.
No matter if you are using TLS over TCP (or HTTPS) or DTLS - end-to-end-encryption can be kept up simply by proxying on the first step of the Handshake.
That is the correct way how to do it.