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There are a couple of web services that offer this - a quick google search around should return some company names, such as www.interviewzen.com

Personally, I feel just as much stress knowing that the interviewer can review all my typos and mistakes in minute detail, leaving me to write code in my local editor and simply copy-paste working sections into the provided editor.

Amazon made use of a service similar to what you've described at one point, however they required access to your machine to verify you weren't "cheating" in the interview. You can read one of the (many) threads here:

https://news.ycombinator.com/item?id=13076073




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